• Ethereum has dropped 9% weekly and 44% YTD, testing critical support at $1,877.
• Whales sold 760,000 ETH in two weeks, with large transactions dropping 63.8% since February.
• Ethereum’s DeFi dominance fell to 52.76% from 61.64% in February 2024, weakening its market grip.

Ethereum has been struggling, with its price down 9% over the past week and 44% since the start of 2025. At $1,877, it is testing crucial support levels, raising concerns about whether it can hold its ground or face a deeper collapse. Despite a brief bounce from $1,800, traders are debating if the worst is yet to come.

According to Merlijn The Trader, Ethereum has been trading within a defined price channel since 2018. The current level represents a mid-channel resistance that has previously dictated major price shifts. The analyst pointed out that “$ETH is sitting on the same monthly support that ignited the 2021 bull run. Hold it, and $10K is in play. Lose it… and things get ugly.”

If Ethereum loses this crucial support, the price could spiral further down, potentially crashing below $1,000 and even touching $610. On the other hand, a successful hold could pave the way for a major bullish recovery. The uncertainty has left investors on edge, unsure of whether to accumulate or cut losses.

Ethereum’s struggle isn’t just technical—it’s also facing a major sell-off from whales. Crypto analyst Ali Martinez reports that large holders have offloaded 760,000 ETH in just two weeks, adding to selling pressure. A decline in whale transactions is another red flag, with a staggering 63.8% drop in large ETH transfers since February 25.

This slowdown in institutional activity suggests that major investors are either reducing exposure or waiting for better conditions. The result is less liquidity, weaker price support, and reduced confidence in Ether’s short-term prospects. If this selling trend continues, the recovery could be much harder than expected.

In addition, Ethereum’s grip on the decentralized finance (DeFi) sector is weakening. Its total value locked (TVL) stands at $50.68 billion, making up 52.76% of the DeFi market. However, this is a notable drop from February 2024, when Ethereum controlled 61.64% of TVL.

Ethereum’s price action remains concerning, currently trading below its 20-day Exponential Moving Average (EMA) of $1,963. A sustained position under this key level suggests continued bearish momentum. Additionally, its Relative Strength Index (RSI) stands at 40.73, reinforcing the increasing selling pressure.

On the Moving Average Convergence Divergence (MACD) indicator, the MACD line is at -92.6, while the signal line is at -100.9, highlighting strong bearish momentum. The histogram remains in negative territory, suggesting that sellers remain in control.

While the market waits for Ethereum’s next big move, if support fails, the drop could be brutal. Traders and investors are watching closely, hoping for a turnaround but preparing for the worst.

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