Ether's recent price dip below $2,000 is challenging the confidence of its holders as selling pressure increases among smaller investors, while larger players continue to accumulate. As of Thursday, Ether fell to a yearly low of $1,927, marking a significant 60% drop from its peak value of $4,950. Analysts suggest this downturn is a critical test for Ether holders, with on-chain and exchange inflow data hinting at the onset of a bear market. Despite the heightened selling activity, the impact of large holders' buying efforts on Ether's ability to regain the $2,000 threshold remains uncertain.
Key observations include:
- Investors holding between 100 and 10,000 ETH have reduced their positions, indicating a capitulation phase.
- Larger investors, those with over 10,000 ETH, have been increasing their holdings, absorbing the selling pressure.
- Ether is currently trading below the realized price across all investor groups, and rising exchange inflows suggest continued downside risk.
Over the past five months, the distribution of Ether across different wallet sizes has shifted noticeably. Data indicates which types of investors are holding firm and which are selling as prices return to levels seen in May 2025. According to CryptoQuant, on August 18, 2025, wallets holding 100 to 1,000 ETH accounted for 9.79 million ETH, while those with 1,000 to 10,000 ETH held 14.51 million. Larger wallets, holding between 10,000 and 100,000 ETH, controlled 17.18 million, and the largest wallets held 2.75 million ETH.
As of Wednesday, the balances for the 100 to 1,000 and 1,000 to 10,000 cohorts decreased to 8.32 million ETH and 12.26 million ETH, respectively. However, wallets in the 10,000 to 100,000 range rose to 19.77 million ETH, and the largest wallets increased their holdings to 3.68 million ETH, suggesting that whales and major investors are accumulating, while smaller and mid-sized holders are selling amidst the current price decline.
Furthermore, Ether is trading below the realized price for all cohorts, which indicates the average cost basis when each group last transacted their ETH. The realized prices span from $2,120 for the largest holders to $2,690 for those with 100–1,000 ETH. Notably, Ether closed below the collective realized price of $2,630 on Saturday, a level associated with stress-induced selling.
Exchange data adds to the pressure on Ether's price. Inflows to Binance surged to about 1.63 million ETH on Wednesday, the highest daily total since 2022. This influx might indicate preparations for selling or rebalancing, and such spikes during weak price periods heighten concerns.
Market data further reflects this trend. According to crypto analyst PelinayPA, Ether's taker buy/sell ratio on Binance is around 0.94, below the neutral point of 1. Both the 30-day and 50-day averages remain under 1, indicating that selling pressure is predominant and not just a temporary phase. PelinayPA suggests this might signal the start of a more prolonged bear market for Ether, with challenging price conditions expected to persist.