Ethereum Drops 26% Since February, Whale Activity Declines 63.8%

Ethereum has been trading below the $1,900 level for several weeks, facing persistent selling pressure. This downward trend began in late February when Ethereum failed to maintain the $2,500 mark, a critical level for sustaining a bullish outlook. Since then, the cryptocurrency has underperformed, disappointing investors who had anticipated a strong rally in 2025 driven by growing institutional interest and market optimism.

Macroeconomic uncertainty, global tensions, and weakening market sentiment have significantly impacted high-risk assets like Ethereum. The price action has been underwhelming, with failed attempts to reclaim key resistance levels adding to the bearish sentiment. Crypto analyst Ali Martinez highlighted a significant decline in on-chain activity, noting that the number of large Ethereum transactions, typically involving whales and institutional players, has dropped significantly since late February. This decline suggests that major market participants may be reducing their exposure due to lingering uncertainty.

Ethereum continues to struggle under mounting pressure from macroeconomic uncertainty and global instability. These factors have led to significant outflows from high-risk, volatile assets like Ethereum. The broader market sentiment remains fragile, largely driven by unpredictable policy decisions and tariff threats. This has pushed investors toward safer assets and away from speculative plays like Ethereum.

Bulls are finding it increasingly difficult to defend key support levels. After failing to hold above $2,500 in late February, Ethereum has slipped steadily lower, now trading below $1,900. With little sign of renewed buying pressure, the risk of a continued selloff looms large. Ali Martinez shared alarming on-chain data showing that since February 25, the number of large Ethereum transactions has dropped by 63.8%. This decline in whale activity signals that major holders may be exiting or sitting on the sidelines, reducing overall market confidence and liquidity.

As long as macroeconomic pressures persist and whales remain inactive, Ethereum is likely to remain vulnerable. Bulls must step in to stabilize price action, or risk watching Ethereum fall further into lower support zones. For now, the outlook remains cautious, with continued weakness likely unless sentiment shifts or broader economic clarity emerges.

Ethereum is currently trading around $1,880, attempting to hold above a critical support zone near $1,750. After weeks of sustained selling pressure, Ethereum remains in a vulnerable position, struggling to recover lost ground. The price is now well below the weekly 200-day moving average and exponential moving average, both sitting near the $2,500 level, which highlights the broader weakness in Ethereum’s market structure.

As long as Ethereum remains below these long-term trend indicators, the overall outlook stays bearish. Bulls must step in with conviction to prevent a deeper breakdown and shift momentum back in their favor. The most immediate priority is maintaining support above $1,800, which serves as a psychological and technical level of strength. To confirm a recovery, Ethereum must also push back above the $2,000 mark in the near term. A break above this level would help restore investor confidence and could open the door for a move toward reclaiming the 200-week averages. Until then, Ethereum remains in a precarious position, and failure to defend current levels could trigger a deeper correction in the sessions ahead.