Ethereum Sees $1.1 Billion Sell-Off Over Five Weeks, “Will Buy Once It Surpasses $2,000”

▲ Ethereum (ETH) / ChatGPT-generated image

Ethereum (ETH) stands at a critical crossroads over whether it can defend the $1,900 support level amid macroeconomic headwinds and record-breaking spot ETF sell-offs.

According to a February 27 report by cryptocurrency outlet CoinGape, Ethereum is facing intense selling pressure, trading near $1,954 after falling 5% over the past 24 hours. Investor sentiment toward risk assets such as cryptocurrencies has sharply deteriorated after the U.S. Producer Price Index came in above market expectations, raising concerns that high interest rates may persist. The market’s Fear and Greed Index currently remains in the “Extreme Fear” zone, with most investors bracing for further downside.

Over the past five weeks, approximately 563,600 ETH (about $1.13 billion) has been sold from Ethereum spot ETFs. Continued institutional outflows have been a decisive factor behind Ethereum’s roughly 49% price drop over the past month. As large-scale liquidations persist and market sentiment worsens, future institutional fund flows have emerged as a key variable for any potential price recovery.

Massive sales by co-founder Vitalik Buterin have also added to downward pressure. Buterin reportedly sold around 17,000 ETH over the past month, worth approximately $34 million at current market prices. Simultaneous sell-offs by whale investors and institutions have delivered a significant shock to the market, pushing the price down from around $3,400 in mid-January to the $1,800 range.

Technical indicators further cloud Ethereum’s short-term outlook. The Relative Strength Index remains in neutral territory, signaling fading upward momentum, while the Moving Average Convergence Divergence indicator has formed a bearish flag with a death cross. If Ethereum fails to break above the strong resistance at $2,000, the downtrend could accelerate, increasing the risk of a retreat not only below the $1,900 support level but also toward the $1,700 area that provided support earlier this month.

For Ethereum to turn bullish, it must first secure a solid weekly close above the $2,000 level. A successful reclaim of $2,000 could open the door for a rebound toward the $2,200 range, but a decisive breakout above the $2,300 resistance would be required for a broader trend reversal. With buying forces attempting to defend $1,900 and sellers citing macroeconomic risks, caution is warranted for investors at this juncture.

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