Ethereum suffered a sharp downturn in the last 24 hours, declining approximately 7% as intensified selling activity swept across the broader cryptocurrency market. The ETHUSD pair traded near $1,940.37 during late market hours, pressured by a wave of leveraged position closures and large-volume exchange inflows.
Market analysts tracking the asset observed that Ethereum continues to oscillate between bullish institutional adoption narratives and aggressive whale-led distribution. However, the latest session reflected overwhelming downside pressure as capital rotated away from altcoins and into lower-risk digital assets.
Trading Volume Surges as Conviction Selling Emerges
On-chain and exchange data indicate that Ethereum’s trading activity surged dramatically during the downturn. Total 24-hour trading volume jumped 72.63%, reaching approximately $28.9 billion — a signal widely interpreted as high-conviction liquidation rather than routine consolidation.
Comparatively, Ethereum declined at nearly three times the pace of Bitcoin during the same period, recording a -6.87% drop versus Bitcoin’s -2.38% slide. This divergence highlights a broader risk-off sentiment across altcoin markets.
Ethereum’s market dominance also slipped notably, declining from 10.49% to 10.02% within a single day. The contraction suggests that investors are reallocating capital away from major altcoins amid heightened volatility.
Technical Structure Signals Sustained Bearish Pressure
From a technical standpoint, Ethereum remains structurally weak. The asset is trading decisively below all key moving averages clustered around $2,033, reinforcing a bearish trend formation.
Crypto analysts identify the next major support at the recent swing low of $1,748. Until buyers reclaim resistance levels above the $2,000 psychological threshold, the prevailing bias remains to the downside. Market technicians argue that the current structure favors sellers unless strong demand emerges at critical support zones.
Whale Activity Sparks Additional Selling Fears
Further intensifying market anxiety was a substantial exchange deposit by crypto investor Garrett Jin, who reportedly transferred 260,000 ETH — valued at roughly $543 million — into Binance in a single transaction.
Large inflows to centralized exchanges are frequently interpreted as potential precursors to selling pressure, particularly during fragile market conditions. The transaction raised speculation that additional downside volatility may follow. Ethereum is currently consolidating within a range of $1,900 to $2,150, though analysts caution that breakdown risk persists if support fails.
Coinbase Reports Quarterly Loss
Compounding market uncertainty, Coinbase disclosed a fourth-quarter 2025 net loss of $667 million, effectively ending its eight-quarter profitability streak. Transaction-based revenue reportedly fell 37% during the same period, reflecting weakened retail participation.
Despite prevailing bearish sentiment, some market strategists remain optimistic. Fundstrat’s Tom Lee projected the possibility of another “V-shaped recovery” for Ethereum, pointing to the asset’s historical pattern of rebounding sharply after steep corrections.
Whether Ethereum stabilizes near current levels or extends losses toward lower support remains contingent on liquidity flows, macro risk appetite, and institutional demand returning to the altcoin sector.
