Ethereum’s main token, Ether (ETH), recently fell to a year-to-date low of $1,927 on Thursday, marking a significant drop of over 60% from its peak of $4,950. Analysts suggest that this downturn is testing investors’ resolve, indicating a potential bear market.

Key Insights:

• Mid-sized holders (100–10,000 ETH) are reducing their stakes, hinting at a capitulation phase.
• Large holders (>10,000 ETH) have been increasing their investments, helping to stabilize prices.
• Currently, ETH trades below the average cost basis for all investor groups, which suggests increasing downside risk.

Wallet Behavior Analysis:

Recent data illustrates a shift in wallet behavior over the past five months. Smaller investors seem to be exiting while larger entities accumulate ETH. For instance, wallets holding between 100–1,000 ETH decreased to 8.32 million ETH, while those owning 10,000–100,000 ETH increased their holdings to 19.77 million ETH.

Ethereum price pressure continues as exchange inflows increase. On Wednesday, Ether inflows on Binance hit around 1.63 million ETH, the highest since 2022. Analysts warn that large inflows during a weak price phase may indicate preparations to sell or rebalance positions.

Conclusion: This article serves as a reminder of the volatility within crypto markets and the necessity for investors to remain vigilant.