Ethereum’s $1,700-$1,000 Liquidation Gauntlet: Where Large Holders Cluster and Risk Looms

Ethereum's price chart just turned into a minefield. A massive cluster of large holders—the so-called 'whales'—has parked their stacks between $1,700 and $1,000, creating a precarious liquidation zone that could trigger a cascade if breached.

The Whale Watch

Forget subtle dips—this is about concentrated risk. When too many big players crowd the same price levels, their automated stop-losses and leveraged positions intertwine. A drop below $1,700 isn't just a correction; it risks setting off a chain reaction of forced selling as those clustered positions get liquidated one after another. It's financial dominoes, with Ethereum as the table.

Navigating the Gauntlet

The market's watching these levels like a hawk. Each test of support near $1,700 increases tension—will the whales defend their position, or will the first major liquidation order snowball? The path down to $1,000 is littered with these potential triggers, a reminder that in crypto, liquidity often means 'the point at which everyone gets forced out at once.' It's the old Wall Street adage dressed in digital leather: risk isn't spread, it's just piled in the same spot and called diversification.

This setup creates a volatile cocktail—a test of holder resolve with billions on the line. The coming weeks will reveal if Ethereum's foundations can hold, or if the very concentration meant to support the price becomes its greatest vulnerability. Buckle up.

Major On-Chain Liquidation Zones Could Shape Ethereum’s Next Price Move

Lookonchain data highlights three major on-chain liquidation clusters that could significantly influence Ethereum’s short-term price dynamics if bearish pressure persists. According to the analysis, Trend Research reportedly holds about 356,150 ETH, valued NEAR $671 million, with estimated liquidation levels between $1,562 and $1,698. If price approaches this band, forced position closures could amplify volatility and accelerate downside momentum.

Another key concentration involves Ethereum co-founder Joseph Lubin alongside two unidentified large wallets. Combined holdings are estimated at around 293,302 ETH, roughly $553 million, with potential liquidation thresholds between $1,329 and $1,368. This zone sits deeper in the corrective structure and could act as a secondary stress level if broader market weakness continues.

A third cluster attributed to the entity known as 7 Siblings holds approximately 286,733 ETH, valued at around $541 million. Their liquidation prices are significantly lower, near $1,075 and $1,029, representing a deeper capitulation scenario should selling pressure intensify further.

It is important to note that liquidation estimates depend heavily on leverage assumptions, collateral adjustments, and evolving market conditions. Still, these zones provide a useful framework for understanding where volatility could increase, as leveraged positions historically tend to magnify both downward cascades and eventual stabilization phases in crypto markets.

Ethereum Price Breakdown Signals Structural Weakness

Ethereum’s weekly chart shows a decisive deterioration in market structure after losing the psychologically important $2,000 level. Price has broken below the 50-week and 100-week moving averages, signaling a shift from late-cycle consolidation into a more defensive phase. This type of multi-MA breakdown historically reflects declining momentum rather than a simple short-term correction.

Volume behavior reinforces this interpretation. The latest downside MOVE is accompanied by expanding sell-side volume, suggesting distribution rather than passive retracement. When rising volume coincides with lower highs and lower lows, it typically confirms sustained selling pressure rather than temporary volatility.

Technically, the next key support zone appears between roughly $1,600 and $1,750, where prior consolidation occurred in earlier market phases. A weekly close below this range WOULD likely expose deeper liquidity pockets toward the $1,300 region, aligning with previously identified liquidation clusters.

From a trend perspective, Ethereum is now trading below all major weekly moving averages, which often caps upside attempts unless reclaim levels occur quickly. For recovery credibility, price would need to regain the $2,200–$2,400 region and stabilize above it.

Featured image from ChatGPT, chart from TradingView.com