Ethereum Price Risks Further Downsides as Leverage Positions Remain Small

Key Insights:

• Ethereum faces downside pressure if the $1,850 support level breaks on a weekly close.
• Leveraged ETH positions remain low as traders reduce risky market exposure.
• Whale wallets increased Ethereum holdings to a 10-week high despite market weakness.

Ethereum price remained under pressure as traders monitored a critical support zone near $1,850. While technical indicators pointed to downside risks, on-chain data showed large holders continued accumulating ETH during the recent market decline.

The divergence between whale accumulation and cautious derivatives positioning has become a central theme for Ethereum traders heading into the next phase of market activity.

Ethereum Price Holds Above Major Support

Ethereum is facing another difficult stretch as traders closely watch the $1,850 level. Market analyst Ali Martinez warned that a weekly close below that mark could trigger stronger selling pressure in the coming weeks.

According to his chart analysis, Ethereum has already rejected from the upper side of a long-term trading channel, opening the door for a deeper correction. The first major downside target being discussed sits around $1,560. That level is viewed as an important support zone where buyers could attempt to slow the decline.

However, if selling pressure becomes stronger and that area fails to hold, analysts are also looking at the $1,070 region. That price level represents the lower edge of Ethereum’s multi-year range.

For now, Ethereum remains trapped between cautious buyers and traders expecting another move lower. The wider crypto market has also struggled to build momentum in recent weeks, which has added more pressure on large-cap assets like ETH.

At the same time, many traders appear unwilling to take aggressive positions. That hesitation is becoming more visible in derivatives data, especially in the leveraged market, where activity has slowed sharply compared to earlier periods this year.

This matters because leverage often plays a major role in sharp crypto price swings. Heavy leverage can fuel fast rallies when prices rise, but it can also increase liquidations during downturns. Right now, the market does not appear crowded with high-risk bets, which changes the way traders are viewing Ethereum’s next move.

Ethereum Leveraged Position Analysis

Crypto analyst CW pointed to the relatively small size of high-leveraged Ethereum positions across the market. According to the latest figures shared online, leveraged long positions currently stand around $1.5 billion, while leveraged short positions sit near $4 billion.

Even though short positions are larger, the overall scale of leverage remains lower than what traders have seen during major volatility periods in the past. CW explained that this reduces liquidation opportunities for large investors, often referred to as whales.

In highly leveraged markets, whales can sometimes push prices sharply in one direction to trigger forced liquidations. That process can create sudden volatility and stronger momentum. However, the current setup suggests fewer overexposed traders are available to liquidate.

The data also points to declining interest from high-risk traders. Many leveraged investors appear to have stepped away from Ethereum after recent price weakness and uncertainty across the broader crypto market.

That lack of aggressive positioning could reduce the chances of violent short-term swings. Still, it may also reflect weak confidence among traders waiting for a stronger market direction before returning with larger positions.

Whale Accumulation Reaches Multi-Week High

Santiment data showed wallets holding at least 100,000 ETH collectively controlled approximately 17.41 million coins. That amount represented roughly 22.03% of Ethereum’s circulating supply and marked the highest level recorded in about ten weeks.

The increase indicated that large holders continued expanding positions despite the recent weakness in the Ethereum price. Historically, whale accumulation has often attracted attention because large holders can influence long-term supply dynamics. However, accumulation alone does not guarantee immediate price appreciation.

Current market conditions remain influenced by broader macroeconomic factors, derivatives positioning, and institutional demand trends.

For now, Ethereum price remains focused on the $1,850 support level. A move below that threshold would shift attention toward lower support zones, while continued stability above it could reduce immediate downside pressure as traders monitor whether whale accumulation continues.

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