Ethereum Falls Below $2,000 as Whales Sell While Retail Traders Stay Bullish

Ethereum has dropped below the important $2,000 level for the first time since March, but many retail investors are still showing confidence instead of fear. Data from market Santiment suggests smaller traders are increasingly viewing the decline as a buying opportunity.

Social media discussions around “buy the dip” have grown stronger as Ether continues to lose value. However, market analysts warn that strong retail optimism during sharp corrections has often been followed by further price weakness.

Institutional Selling Puts Pressure on ETH

While retail investors remain hopeful, larger market players appear to be reducing exposure. Harvard University’s endowment fund reportedly sold its entire $87 million Ethereum position, while Bankless co-founder David Hoffman confirmed he also exited his ETH holdings.

US spot Ether exchange traded funds have recorded more than $470 million in outflows since early May, signaling weaker institutional demand.

Ethereum mega whales, wallets holding over 10,000 ETH, have also reduced balances by more than 5% in 2026.

ETH Price Could Test $1,750 Support

Ethereum is now trading nearly 40% below its 2026 peak near $3,400. Technical analysts point to a bearish rising wedge breakdown, a pattern that may push ETH toward the $1,750 level if selling pressure continues.