Ethereum Crashes 29% in a Week, but Reversal Signals Start to Appear

Ethereum plunged nearly 29% over the past week, slipping below $2,000 and trading near $1,920 — levels last seen nine months ago in May 2025. Diminishing buyer support has left the market fragile and on-chain data points to growing stress among holders. Realized losses exceeded $1.2 billion within 24 hours as many investors sold while underwater, a wave of panic selling that has reinforced negative momentum and added downward pressure on price.

Long-term investor metrics have flipped red, signaling net outflows from HODLer wallets. Selling by conviction-driven holders raises macro-level pressure and increases the risk that the decline could deepen before a meaningful recovery unfolds. ETH is holding above $1,796 for now; a break of that level could see price slide toward $1,671 or lower.

A rebound remains possible if selling eases and Ethereum reclaims $2,000 — the Money Flow Index sits well below 20, suggesting oversold conditions that have historically preceded short-term relief.