Ether fell below the $2,000 mark, driven by a wave of whale selling and forced liquidations that pushed prices to an eight-month low. The move tested the conviction of holders across all cohorts and amplified volatility, leaving many investors below their realized cost bases.
On-chain and market data showed a strong redistribution by large Ether holders. During the week, approximately 1.1 million ETH were dumped, estimated to be around $2.8 billion at current prices. There was a single event where 96,500 ETH and 334,000 SOL were dumped, representing an estimated loss of $141 million.
The stablecoin market is at a critical juncture. Over the past few days, more than $2.6 billion in liquidations were recorded between Bitcoin and Ether, with ETH accounting for approximately $576.34 million in the last 24 hours. Holders with between 100 and 10,000 ETH also reduced their positions, while addresses with more than 100,000 ETH clustered around realized prices near $2,120.
Technically, the market broke key support levels, as Ether briefly traded below $2,630 on February 3 and broke the psychological $2,000 level on February 5.
Institutional accumulation and staking as a counterpoint
Despite anticipated selling pressure, institutional and large-address behavior presented a more complex picture. Data indicated that whales accumulated over 800,000 ETH between October 2025 and January 2026, even as retail holders dumped approximately 2.7 million ETH. Entities like Bitmine reportedly increased their holdings, maintaining around 4.28 million ETH.
Staking dynamics squeezed the circulating supply: staking reached an all-time high of 36 million ETH locked, representing almost 30% of the circulating supply, as of February 5. These inflows, along with selective institutional inflows into vehicles like Grayscale’s mini trust, contrasted with the outflows from ETFs and products that contributed to the broader risk-averse tone.
Bitcoin ETFs saw $434 million in outflows as of February 6, and the broader crypto market lost approximately $800 billion in January, amplifying the forced liquidations and negative funding rates that returned in early February.
In the short term, the market showed a clear divergence: aggressive distribution and margin liquidations on one hand, and long-term strategic accumulation and staking commitments on the other.
High staking participation and concentrated institutional purchases have reduced the available supply, providing a structural counterweight that could limit the absolute decline over a longer horizon.
Market participants should expect further turnover and plan for narrow risk management windows as on-chain behavior continues to dictate price dynamics through mid-February 2026.
