Ethereum Retreating to Early 2021 Price Levels... Long-Term Holders Now in Loss Zone

Ethereum has fallen back to early 2021 price levels, pushing significant long-term holders into the loss zone. According to blockchain media The Block, Ethereum has largely reversed gains made after the launch of spot ETFs and major network upgrades. The key factor is deteriorating price momentum, with trader and analyst Jesse Olsen noting the weekly chart closed below key support levels, increasing the likelihood of lower lows. He highlighted that eight of the past 10 months have seen bearish candles, signaling a potential long-term trend reversal. Technical indicators also show weakness, with Ethereum breaking below its 200-week simple moving average and forming a lower high, reminiscent of its 2021 lows. The market's disappointment deepened as Ethereum's price has reverted to its 2021 levels despite recent ETF launches, mergers, and strong rallies. Institutional selling intensified as a major investor opened a short position of 22,000 ETH with 25x leverage, valued at $35 million, indicating strong bearish bias. Spot ETFs have also become a burden, with continued outflows and declining institutional demand. However, fund strategist Tom Lee of Bitmain Technologies cautioned against panic selling, maintaining a long-term bullish outlook despite short-term weakness. Key watchpoints include potential ETF inflows, prolonged Layer 1 revenue declines, and developer attrition risks.