All Ethereum Whales in the Red, Is Below $2,000 the Real Bottom?

▲ Ethereum (ETH), Cryptocurrency Whales / ChatGPT Generated Image ©

Ethereum (ETH) has seen its key support level at $2,000 collapse, and shocking data shows that even major investors—so-called whales—have now entered loss territory across the board. However, some analysts suggest that this extreme loss pressure could paradoxically serve as a strong accumulation signal marking a medium- to long-term market bottom, drawing significant attention from investors.

According to cryptocurrency outlet Bitcoinist on February 21 (local time), the latest on-chain analysis by analyst Darkfost indicates that the prolonged correction in Ethereum has pushed unrealized profits for all whale cohorts into negative territory. Wallets holding between 1,000 and 10,000 ETH recorded an unrealized profit ratio of -0.21, those holding 10,000 to 100,000 ETH posted -0.18, and even mega-whales with more than 100,000 ETH are experiencing losses of around -0.08.

This situation is highly unusual, as the scale of unrealized losses is expanding earlier than in previous bear markets, despite Ethereum not yet breaking below its April low. If prices decline further from here and financial pressure on whales intensifies, there remains a risk that some large holders unable to withstand the losses could trigger capitulation selling, dramatically amplifying short-term market volatility.

However, there are also positive aspects. Despite all whale groups being at a loss, no immediate large-scale sell-off has emerged, and prices are firmly defending above recent short-term support levels. Historically, periods when major investors face extreme stress have often coincided with accumulation phases that form medium- to long-term market bottoms, as weaker participants exit and leverage is flushed out.

From a technical perspective, Ethereum’s structure remains fragile. On the weekly chart, it is trapped below key moving averages and continues to form lower lows, while former support zones have turned into strong resistance levels. With speculative participation declining, even if temporary rebounds occur, a lack of accompanying trading volume makes it difficult to expect a full-fledged trend reversal.

Experts identify Ethereum’s immediate major support near $1,800, with strong resistance between $2,200 and $2,600. They advise a cautious approach, keeping open the possibility of further declines or prolonged sideways movement until improvements in liquidity, increased spot demand, and macroeconomic stabilization support a decisive breakout above this resistance zone.

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