Ethereum struggles below $2,000 amid weak whale activity

Ethereum (CRYPTO:ETH) has faced significant challenges in recent weeks, with its price dropping nearly 30% over the past 30 days and struggling to break above the $2,000 threshold.

This decline is attributed to persistent bearish sentiment and cautious behavior among large investors, or "whales," who have been reducing their exposure to the asset.

The BBTrend indicator, which measures the strength and direction of price trends relative to Bollinger Bands, has recently turned positive after six days in negative territory, suggesting that sellers may be losing momentum.

However, at a reading of 0.22, the indicator remains at modest levels, indicating that while the sell-off might be easing, a strong bullish trend has yet to emerge.

Meanwhile, the number of Ethereum whales—wallets holding at least 1,000 ETH—has declined to 5,752, down from a peak of 5,828 in late February.

This reduction in large holders reflects a cautious approach among key players, potentially limiting the strength of any potential price rallies.

As noted by market analysts, Ethereum's struggles are also influenced by increased competition from Layer-2 solutions, which have been capturing transaction fees and reducing Ethereum's revenue.

Standard Chartered has revised its 2025 price forecast for Ethereum from $10,000 to $4,000, citing these challenges and the commoditisation of ETH due to cheaper alternatives.

Despite these challenges, some analysts remain optimistic about Ethereum's long-term potential, particularly if it can address its scalability issues and adapt to the evolving DeFi landscape.

The upcoming Pectra upgrade is seen as a potential catalyst for Ethereum's recovery, as it aims to enhance the network's efficiency and scalability.

At the time of reporting, the Ethereum (ETH) price was $1,934.17.