The price of Ethereum has dropped substantially in recent sessions, reaching the $2,255 mark. This sharp correction is being exacerbated by obvious on-chain panic behavior, particularly from small- to mid-size whales and swing traders rather than being solely the result of market structure or technical weakness. Significant amounts of Ethereum have been sold by a number of well-known holders during the most recent decline. Within the narrow price range of $2,378 to $2,412 per ETH, thousands of positions were liquidated by addresses connected to well-known active traders.
As Ethereum sliced through the 50-day and 200-day moving averages and broke below important support zones, these movements indicate surrender rather than deliberate selling. The chart amply illustrates the fallout: A robust red candlestick pattern that developed over several days suggests persistent sell pressure. Further evidence that the bulls have momentarily lost control comes from the break below the $2,369 level, which previously served as both a support and a moving average confluence.
The short-term outlook is made even more dire by the increasing volume that coincides with this price decline. A classic sign of panic-driven exits is an increase in sell-side activity at falling prices, which frequently causes the market to overshoot to the downside before any sort of recovery is anticipated. The only technical cushion in view is located close to the $2,100-$2,150 zone as Ethereum is currently trading well below both its 50 and 100 EMAs.
From the perspective of market sentiment, this kind of aggressive offloading by swing traders typically indicates a short-term trend break rather than a complete capitulation. Ethereum is exposed to additional downside risk especially if retail holders begin to imitate the actions of these early adopters.
Ethereum's network activity and Layer-2 adoption are still solid fundamentals, but until volatility abates and confidence returns, the price will probably continue to be pressured. Traders should monitor if this panic selling trend continues or if buyers seeking value return after an oversold RSI level bounce.
