Why $ETH is Struggling to Break $2,000

The recent dip in Ethereum (ETH) is a result of a "triple threat" of technical resistance, whale distribution, and macro-economic pressure. From a technical standpoint, the $2,000 level has transitioned from a psychological support to a formidable "supply wall." On-chain data reveals that over 1 million ETH were purchased by short-term holders near this price point; as soon as ETH nears $2,000, these investors sell to "break even," creating instant downward pressure. Furthermore, while retail traders have been attempting to "buy the dip," whale wallets (holding 10k–100k ETH) have been offloading significant portions of their holdings, leading to a net outflow that outweighs current buying demand.

Beyond the charts, the broader market is reacting to macro-economic shifts and regulatory fatigue. The nomination of a hawkish Federal Reserve Chair has strengthened the US Dollar (DXY), which traditionally pulls liquidity away from risk assets like crypto. Additionally, the continued stalling of the "Clarity Act" in Washington has deflated hopes for immediate institutional regulatory breakthroughs. This "risk-off" sentiment is compounded by high liquidations in the derivatives market—nearly $800 million in long positions were flushed recently—creating a cascading effect that keeps ETH pinned below its key moving averages. Until ETH can flip $2,015 back into support with high volume, the market remains in a cautious consolidation phase#PredictionMarketsCFTCBacking #SOL #AAVEUSDT #BTC☀️