Ethereum is under pressure after a steep sell-off that led to its price falling below critical technical and on-chain indicators. This number $1,200 has to be an area of interest for the market participants due to a number of analysts believing that it could be a ‘support’ level. This level can be seen as Ethereum price structure and investor sentiment deteriorates alongside macro and general crypto market pressures.
Major sell-offs and on-chain stress
World Liberty Financial (WLFI), a wallet linked to a Trump-affiliated group, recently sold over 5,471 ETH at a 55% loss. Data from Arkham Intelligence shows that the sale occurred at around $1,465 per ETH, totaling just over $8 million.
WLFI originally purchased 67,498 ETH for approximately $210 million, meaning the wallet is now holding an unrealized loss of $125 million. At the same time, multiple large holders have exited positions. One Ethereum whale sold 10,000 ETH after holding it for nearly 900 days, despite previously sitting on much larger profits.
Other DeFi users were liquidated and forced to sell their holdings, such as a position of over 67,000 ETH on Sky and Aave. These actions have triggered debate on the impact of market stability and the liquidity potential in the market.
Price action near realized value and support watch
Ethereum recently dropped below its Realized Price, a measure used to determine average on-chain acquisition costs. This drop typically reflects investor stress and has coincided with sell-offs in past cycles.
Analyst Ali Martinez stated in an X post that $1,200 may act as a base for stability. Ethereum is currently trading around $1,570, though its recent volatility has left traders cautious. Support at $1,420 and $1,505 remains important, but failure to hold those could open a path toward $1,200.
According to CryptoQuant, ETH trading at this level often aligns with the late stages of downturns, which may suggest a potential bottom-forming. Technical analysis points to $1,200 as a support level that could prevent further losses if selling resumes.
