Ethereum Faces Mounting Pressure as Key Investors Retreat, $1,800 Support in Focus

Ethereum (ETH) is navigating a critical juncture in early February, with mounting sell-side pressure threatening to push prices toward levels not seen in weeks. A confluence of technical breakdowns and shifting on-chain behavior from major stakeholders has analysts eyeing the $1,800 zone as the next major battleground for the world's second-largest cryptocurrency.

The downturn gained momentum on February 3rd when ETH conclusively broke below a key chart pattern—a head-and-shoulders formation that had been developing since late last year. This classic reversal signal projects a downward target around $1,820, setting a clear technical risk parameter.

Compounding the technical weakness, blockchain data revealed that Ethereum co-founder Vitalik Buterin initiated sales of approximately 2,961 ETH (worth roughly $6.6 million) in recent days. The timing, coinciding with the chart breakdown, sent a ripple of concern through the market. "When a foundational figure like Buterin reduces exposure during a fragile period, it inevitably weighs on market psychology," noted Marcus Chen, a veteran crypto analyst at ChainSignal Insights. "It's less about the amount and more about the signal it sends."

This high-profile move appears to have catalyzed a broader shift in sentiment among other key investor cohorts. Data from Glassnode indicates that large wallet holders, often called "whales," briefly attempted to buy the dip but quickly reversed course. Their aggregate holdings have shed about 140,000 ETH (over $290 million) since the breakdown.

Perhaps more telling is the behavior of long-term holders (wallets holding ETH for over 155 days). Their net position change metric turned negative for the first time in weeks on February 3rd and 4th, indicating this typically steadfast group has begun distributing coins. This synchronized retreat across whales and long-term investors suggests a meaningful erosion of conviction at higher price levels.

The convergence of on-chain and technical analysis now points to the $1,880 to $1,820 range as the next critical support cluster. The UTXO Realized Price Distribution (URPD) metric shows a significant concentration of ETH supply last moved around $1,880, creating a potential demand zone. A failure to hold this area could open the path toward $1,560, according to Fibonacci extension levels.

For the bearish outlook to be invalidated, Ethereum would need to stage a robust recovery, reclaiming and sustaining levels above $2,270 and subsequently $2,700. Until then, analysts warn that any price rallies are likely to be met with selling pressure.

Market Voices: A Spectrum of Reactions

Sarah Lin, Portfolio Manager at Digital Horizon Capital: "The coordinated pullback from different investor groups is the most concerning data point. It reflects a reassessment of near-term macro catalysts for ETH. The $1,800 zone is strong on-chain support, but the market needs a positive narrative shift to stabilize."

David Park, Independent Crypto Trader: "This is classic risk-off behavior. The head-and-shoulders target is clear, and Buterin selling is the cherry on top for bears. I'm watching the $1,880 level closely; if it doesn't hold with significant volume, we're going to $1,600 much faster than people think."

Riley Carson (@CryptoFirebrand on X): "It's absurd that one person's wallet activity still moves the market this much. It highlights the immature, hyper-centralized narrative around Ethereum despite claims of decentralization. Whales and 'HODLers' are just following the insider cue—retail gets left holding the bag again."

Professor Aris Thorne, Blockchain Researcher at Stanford: "While the short-term price action is dominated by these signals, it's crucial to differentiate between market noise and fundamental network health. Ethereum's usage metrics, developer activity, and the upcoming protocol upgrades remain the core long-term value drivers, which are not reflected in daily price charts."