Ethereum's Price Plummets: Sell-offs Push ETH Towards $2.1k

Ethereum's price faces potential downward pressure, with market metrics suggesting a possible decline towards the $2.1k mark amidst recent sell-offs. Despite a brief period of consolidation around $2.6k in February, on-chain analytics indicate that selling pressure remains significant. According to insights from crypto analyst RektProof, the current trading range mirrors historical patterns where accumulation occurred prior to notable price rallies.

Ethereum's price has been under scrutiny as metrics suggest a possible decline to $2.1k, raising concerns among investors about ongoing market pressures. The recent fluctuations in Ethereum's price have raised eyebrows among investors and analysts alike. As of late February, Ethereum has seen a 2.64% decline in its value, currently trading under pressure as market conditions shift. Notably, the implications of market events such as the Bybit hack, which siphoned off $1.46 billion worth of Ethereum (ETH), have heightened concerns over liquidity and seller exhaustion.

The seller exhaustion metric indicates the percentage of supply held in profit alongside 30-day price volatility. Recently, Ethereum has experienced high volatility, coinciding with a decline in profit among holders. This suggests a prevailing risk as the exhaustion metric rises, indicating low-risk price bottoms are not currently evident. The lack of profit among holders during these turbulent times suggests that further declines may still be on the horizon for ETH.

The percentage supply in profit has significantly decreased since Ethereum encountered resistance near the $4k mark last December. Presently, the metric sits lower than any point recorded since October 2023. This decline is particularly frustrating for holders, especially as Bitcoin's price nears $100k, highlighting Ethereum's relative underperformance in the market.

The short-term holder net unrealized profit/loss (NUPL), which reflects the profitability of transactions younger than 155 days, currently indicates that short-term holders are experiencing unrealized losses, with values at -0.164. Although the negative NUPL might suggest a potential buying opportunity, it does not guarantee local market bottoms. Historical data, such as in January 2022, indicates that negative NUPL can further decline, as evidenced by Ethereum's subsequent plunge after a brief consolidation phase.

These insights exemplify how metrics must be contextualized, highlighting the potential for ETH's price to approach or