The cryptocurrency market is experiencing a continued leverage flush this week, with major assets including Bitcoin and Ether trading in the red. Ether (ETH) has declined nearly 4% in the last 24 hours, risking a drop below the psychologically significant $1,900 level if the bearish trend persists. This market movement has led to over $300 million in leveraged positions being liquidated since Tuesday.
Despite the price pressure, on-chain data reveals a shift in investor behavior. After being net sellers earlier in the month when ETH fell to the $1,700 region, whales (wallets holding 10,000 to 100,000 ETH) have resumed accumulation. Between February 4 and 8, these large entities bought over 520,000 ETH. During the same period, retail investors (wallets holding 100-10,000 ETH) sold 233,000 ETH, marking the first time since the start of the year that whale buying pressure has outweighed retail selling.
However, derivative metrics suggest the overall market sentiment remains negative. The ETH Net Taker Volume on exchanges has returned to negative territory, indicating that traders are building up short positions again. Furthermore, the ETH Coinbase Premium has remained at a discount for three consecutive months, signaling continued selling pressure from U.S.-based investors.
Technically, ETH is in a firm downtrend, having lost 14% of its value over the past seven days. The price faced rejection around the $2,100 resistance level and has since fallen below the $2,000 mark. Analysts point to the $1,740 level as critical structural support; a break below could extend losses. The Relative Strength Index (RSI) and Stochastic Oscillator on the daily chart are in oversold territory, confirming dominant bearish momentum. A hold above $1,740 could pave the way for a retest of the $2,100 resistance, with a potential rally toward the February high of $2,380 if that level is surpassed.
