Ethereum price unravels as downside pressure mounts, early stages of a bear market?

XRP has faced a significant sell-off, with major whale wallets offloading nearly 200 million XRP, valued at approximately $400 million, within 48 hours. This sell pressure has contributed to a 10.32% decline in XRP's price, dropping below the crucial $2 psychological level. The market sentiment remains bearish, exacerbated by the influx of sell-side liquidity from wallets holding between one million and ten million tokens.

Glassnode co-founders Jan Happel and Yann Allemann assert that the current cryptocurrency crash is driven by a singular source of sell pressure, primarily affecting Bitcoin. They argue that this situation reflects a mechanical unwind rather than a narrative shift in the market. Their analysis indicates that the sell-off is not a natural market response but rather a forced exit by a participant, as evidenced by unusual momentum indicators.

ETH price has fallen to a four-month low, reaching levels not seen since July. Despite this decline, futures data suggests a potential bounce back to $3,200 for Ether, indicating possible market resilience.

Despite a decline in Ethereum's price, interest in staking the cryptocurrency remains high, with many investors willing to lock in their ETH holdings. This period marks one of the highest levels of Ethereum locked in staking contracts, indicating sustained demand for the leading altcoin.

Bitcoin is currently trading just above $83,000, amid a wave of liquidations totaling approximately $2 billion. This decline has been accompanied by significant outflows from spot exchange-traded funds (ETFs), indicating a challenging environment for major cryptocurrencies like BTC, ETH, XRP, and SOL.

Dogecoin price has broken through several major support levels, with price action turning sharply bearish. A new yearly low at $0.08 is now at risk if sellers continue to dominate the market.

Hyperliquid trader profits have decreased significantly from $100 million to $38.4 million as long positions in Ethereum and XRP have incurred losses during a market downturn.

BitMine, a cryptocurrency treasury company, has announced plans to stake its Ethereum (ETH) holdings in 2026 to generate revenue. However, the company is currently facing significant losses, with each ETH holding down over $1,000 amid a market downturn.