Ethereum drops toward $1,950 as large holders hold firm during selloff

Ether is sliding toward $1,950, but the largest wallets are not following the selling pressure.

Ether fell 4.2% to $1,992.21 on May 28, its lowest since March, as Middle East tensions triggered a broad crypto market deleveraging.

"Large holders are accumulating while retail sentiment remains elevated — a divergence that has historically preceded stabilization," a CryptoQuant analyst said.

Exchange withdrawals over the past 30 days dropped to about 16.05 million ETH, the lowest since June 2024, according to CryptoQuant. That contrasts with institutional outflows: US spot Ether ETFs posted $67.1 million in net withdrawals on May 27, marking 11 consecutive days of outflows totaling more than $470 million since May 7, per Farside data.

The key level to watch is $1,950. A sustained break below that could open a path toward $1,850, the next major support. If large holders continue accumulating and Bitcoin holds above $72,000, Ether may find a base near current levels.

Whales Accumulate as Institutions Exit

Data from CryptoQuant shows wallets holding more than 10,000 Ether reduced their balances by over 5% in 2026, while Harvard University's endowment fund exited its entire $87 million Ether position and Bankless co-founder David Hoffman disclosed he had sold his holdings. Yet the largest cohort of holders — those with balances exceeding 100,000 ETH — have maintained or increased their positions during the drawdown, according to on-chain data.

The divergence extends to retail. Santiment data shows social media discussions around "buy the dip" surged after Ether lost the $2,000 level, indicating retail traders are treating the decline as a buying opportunity. The analytics platform warned that crowd optimism after sharp declines has historically appeared before prices stabilize, and stronger contrarian conditions may emerge only after retail enthusiasm cools.

On the technical side, Ether's Relative Strength Index on the daily timeframe dropped to about 28, placing the token in oversold territory. Volume expanded during the latest decline, indicating stronger selling activity as ETH moved below the $2,000 threshold. The 20-day EMA sits near $2,139, while the 50-day, 100-day, and 200-day EMAs stand around $2,198, $2,281, and $2,514, respectively — all well above the current price.

The broader market sell-off was exacerbated by derivatives activity. Bitcoin saw $321.66 million in liquidations over 24 hours, a 178.94% spike, indicating forced selling of leveraged positions that likely pressured correlated assets like Ether, according to Coinglass.

This article is for informational purposes only and does not constitute investment advice.