Ethereum Crashes Below $2,000 as Major Holders Face Massive Losses

Ethereum got crushed. The second-largest cryptocurrency by market cap fell below the critical $2,000 level last week and can’t seem to climb back up, leaving major investors nursing billions in unrealized losses as ETH trades at just $1,971 according to BeInCrypto Markets data.

The selloff has been brutal for anyone who bought ETH at higher prices over the past year. BitMine, which holds the largest Ethereum treasury among public companies, now sits on more than $7 billion in unrealized losses per CryptoQuant data. That’s a staggering number that shows just how much pain big holders are feeling right now. ETH has dropped over 30% so far in 2026, and there’s no clear sign when the bleeding might stop. Exchange data reveals more ETH getting withdrawn than deposited, which usually means whales are still accumulating despite the carnage.

Things look pretty grim.

On-chain analyst CW8900 pointed out something interesting about accumulation addresses that have been active since June 2025. These addresses are now underwater, holding ETH at a realized price higher than current market levels. “The stress on these major holders is becoming more apparent as prices continue to slide,” CW8900 said in a recent report. ETF investors aren’t having any better luck either – they’re sitting on positions with an average cost basis around $3,500, way above where ETH trades now.

Bloomberg Intelligence’s James Seyffart noted the ETF situation mirrors what happened in April 2025. “We’re seeing a similar percentage loss pattern, but this time the pain seems more concentrated among institutional players,” Seyffart told reporters last week. Net inflows into Ethereum ETFs have dropped from $15 billion to under $12 billion, though many investors haven’t bailed out completely yet.

But some whales aren’t giving up. Not yet.

BitMine doubled down on its Ethereum bet by purchasing another 40,000 ETH and staking 140,400 ETH, bringing their total staked holdings to 2.97 million ETH. That’s a massive commitment that signals they’re thinking long-term rather than worrying about short-term price swings. The company didn’t respond to requests for comment about their strategy, but the numbers speak for themselves. Related coverage: Ethereum Struggles Near ,000 as Triangle.

Trading activity tells its own story too. CryptoQuant researcher Alex Kim noted on February 10 that ETH’s trading volume dropped 20% compared to January levels. “Smaller investors seem hesitant to jump in amid all this volatility,” Kim said. Meanwhile, Grayscale Investments hasn’t adjusted their Ethereum Trust holdings much, taking what looks like a wait-and-see approach according to their February 9 report.

Binance CEO Changpeng Zhao mentioned on February 8 that user queries about Ethereum jumped 15% on their platform, even as prices kept falling. That suggests people are still interested, maybe looking for entry points. Kraken noticed something similar – sell orders for ETH actually decreased about 12% since early February, which might mean traders are holding instead of panic selling.

Some smaller funds are feeling the heat more than the big players. Altana Digital Currency Fund cut their Ethereum exposure by 10% over the past week, trying to reduce risk as prices stay unstable. “We’re taking a more cautious approach until we see clearer signs of stabilization,” a fund representative said February 11.

Glassnode data from February 12 showed Ethereum’s active address count rose 5% over the past week, suggesting network activity remains fairly steady despite the price problems. This could mean new users are jumping in at lower prices or existing holders are just staying put.

Industry analyst Tom Lee from Fundstrat Global Advisors thinks current levels might be a buying opportunity for patient investors. “Past market cycles have shown recovery potential after significant downturns like this,” Lee said February 9, though he warned that timing these moves is basically impossible to get right. More on this topic: Bitcoin Searches Explode as Price Crashes.

Pantera Capital kept their Ethereum holdings unchanged in their latest portfolio update from February 11. The firm said they’re sticking with their long-term thesis despite the tough market conditions.

ETH needs to reclaim that $2,000 level and hold it to show any real strength. For now, major holders are basically betting on a future recovery while sitting on massive paper losses.

The broader cryptocurrency market hasn’t provided much support for Ethereum’s struggles either. Bitcoin dropped 8% over the same period, dragging most altcoins down with it as institutional money flows out of risk assets. Coinbase reported that retail trading volume across all cryptocurrencies fell 25% in February compared to January, with many smaller investors stepping back from the market entirely.

Several major DeFi protocols built on Ethereum have also felt the pressure from falling ETH prices. Uniswap’s total value locked decreased by $2.3 billion since early February, while Aave saw lending activity drop 18% as users become more cautious about leveraging their positions. MakerDAO’s DAI stablecoin supply contracted by nearly $800 million as borrowers rushed to close out collateralized debt positions before potential liquidations.