Ethereum is taking another leg down. The native token fell to just over $2,000 earlier today, its lowest level in almost two months, according to Crypto Potato.

The selloff is not a mild dip. Crypto Potato says ETH is down 17% since its monthly high at $2,425, and the broader backdrop is “quite bearish.” Santiment Intelligence, cited by Crypto Potato, frames the move as potentially the setup for a major trend reversal. But the immediate tape looks rough.

Key levels break, analysts warn

Crypto Potato reports that support has already been tested and lost through the week. The token was stopped at $2,400, $2,300, $2,200, and $2,100 before today’s deeper move. The latest crucial level was $2,050.

Popular analyst Ted Pillows, cited by Crypto Potato, argues this “opens the door for more profound corrections.” He also warned that if ETH drops through the psychological $2,000 support, “new lows will just be a matter of time.”

Liquidations show the leverage is getting flushed

Derivatives activity tells a more specific story. Crypto Potato says fellow analyst CW noted heavy ETH long liquidation as the price fell.

CoinGlass data cited by Crypto Potato puts it in stark terms. The total value of liquidated ETH longs is over $250 million per day, second only to bitcoin’s $380 million. CW also described a shift in positioning. As short positions closed, open interest declined and Net Position Delta increased.

Put together, Crypto Potato’s cited analysis points to high-leverage longs getting forced out while bearish bets scale back. That mix can sometimes reduce immediate sell pressure. CW’s comment is summarized by Crypto Potato as “high-leverage longs are getting wrecked, while bearish bets are closing,” which could bring “some market calmness.”

high-leverage longs are getting wrecked, while bearish bets are closing,

Why it matters

ETH’s spot price is one thing. The liquidation cascade is another.

When Crypto Potato reports $250M daily ETH long liquidations and a drop in open interest alongside rising Net Position Delta, that signals stress concentrated in leveraged positions. That matters because leveraged flows can amplify moves in both directions, even when spot buyers show up later.

Market impact

Crypto Potato frames the derivatives unwind as one reason for a potential pause in the selling, even as spot still tests key levels. However, the same article also highlights the risk that losing $2,000 could accelerate the downside, per Ted Pillows.

Here’s what the source text supports on price and positioning:

TopicWhat Crypto Potato reportsSource in text
ETH intraday lowJust over $2,000. Lowest in ~2 monthsCrypto Potato
Drop since monthly highDown 17% vs $2,425Crypto Potato
Key levels tested$2,400, $2,300, $2,200, $2,100, then $2,050Crypto Potato
Liquidated ETH longsOver $250M per dayCoinGlass via Crypto Potato
Liquidated BTC longs (comparison)$380M per dayCoinGlass via Crypto Potato
Open interest and positioningOpen Interest decreased, Net Position Delta increased as shorts closedCW via Crypto Potato

Whale buying appears, but it does not erase risk

There is a counter-signal. Crypto Potato cites Lookonchain reporting an “OG whale” returning to accumulation.

Lookonchain data described by Crypto Potato says this wallet has bought over $8 million worth of ETH around $2,050. It also says the whale previously sold when ETH traded above $2,850.

The whale’s earlier track record, as relayed by Lookonchain in Crypto Potato’s text, includes a claimed 376x return on an initial ETH investment from 10 years ago. That past win is interesting, but it doesn’t immunize assets from further downside. It just means at least one large holder is willing to take risk at these levels.

What to watch next

Two things in the Crypto Potato account deserve follow-through.

First, whether ETH holds the $2,000 psychological level after losing $2,050, per Ted Pillows’ warning of “new lows” if support breaks.

Second, whether derivatives calm down after the liquidation wave. Crypto Potato’s cited CW view ties “market calmness” to high-leverage long liquidations ending and bearish positioning closing.

If liquidations slow while spot stabilizes, the bearish momentum could ease. If not, whale buys may look like a headline, not a floor.