One analyst warned that a price drop below $2,000 would inevitably lead to new lows.
Ethereum’s native token has faced the latest cryptocurrency market correction hard, with the asset falling to just over $2,000 earlier today, which became its lowest price point in almost two months.
Moreover, it is down 17% since the monthly high of $2,425, and the overall outlook looks quite bearish. Despite intelligence sentiment He believes This may be the necessary factor for a major trend reversal, and the current environment is nothing short of disappointing, to say the least.
More trouble to come?
After stalling at $2,400, $2,300, $2,200, and $2,100 earlier this week, the last critical support capitulated was the $2,050 level during today’s decline. According to famous analyst Ted Bellows, this opens the door to more profound corrections. Moreover, it is to caution That if ETH loses the psychological support of $2,000 as well, new lows “will only be a matter of time.”
Fellow analyst CW noted that a large amount of ETH long positions were liquidated on the way down. More specifically, data from CoinGlass shows that the total value of cleared ETH trades is over $250 million on a daily scale, second only to Bitcoin’s $380 million.
CW added that as short positions were closed, open interest decreased significantly and the net delta of positions increased. They conclude that high-leverage long trades are destroyed, while bearish bets are closed, which could lead to some calm in the market.
During the period of decline, $ Ethereum Long positions were liquidated in large quantities.
Then, as short positions were closed, open interest (OI) decreased and net position delta increased.
Long positions with high leverage are liquidated, and bearish bets are closed. pic.twitter.com/bTYuT7tjnG
– CW (@CW8900) May 23, 2026
The return of the whale
The upside for the Ethereum ecosystem right now is the return of the OG whale, as reported by Lookonchain. Data from the analytics firm shows that this market participant, known for earning a 376x return on his initial investment in ETH 10 years ago, has started accumulating again.
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On-chain data reveals that this whale has acquired over $8 million worth of ETH at prices around $2,050. Previously, it was sold when the value of the altcoin was above $2,850.
As the market declines, another… #EthereumOG Who made $34.2 million (376x return) buys the dip $ Ethereum!
10 years ago, this OG received 12,001 $ Ethereum From ShapeShift for only $7.58 each.
Over a year ago, he sold it for 34.3 million USD/USD Priced at $2,856, it generated $34.2 million in profits – a return of 376 times. pic.twitter.com/vSfrYyo2Bl
– Loconchain (@loconchain) May 23, 2026
