Ethereum Whale Nears Liquidation as Price Struggles, Market Awaits Next Move

• A whale’s $11.92M ETH position faces liquidation at $1,863, risking further sell pressure if Ethereum’s price keeps struggling.
• Despite bullish catalysts, Ethereum underperforms as Layer 2 fragmentation and centralized sequencers add selling pressure.
• Competitor chains like Solana and Avalanche attract developers with better UX, while Ethereum lacks clear leadership and direction.

Ethereum faces a crucial moment as a whale approaches liquidation on Compound. The investor holds 5,472.8 ETH, worth approximately $11.92 million. With a liquidation price set at $1,863, the whale’s position is on the brink of collapse. This massive ETH position was initially valued at $18.47 million when supplied nearly nine months ago. Consequently, the investor has already suffered a $6.65 million loss due to Ethereum’s price decline.

The market structure indicates a Wyckoff accumulation pattern, signaling a potential recovery. Ethereum’s price action aligns with this pattern, currently moving through Phase C. This phase is critical as it determines whether demand will overpower selling pressure. If the price holds, a bullish reversal may follow, leading to an upward trajectory.

Ethereum’s Underperformance Raises Questions

Despite several bullish catalysts, Ethereum has struggled against expectations. The approval of an ETF should have driven demand, yet ETH remains weak. CoinMamba, a co-founder of SonicLabs, expressed confusion regarding Ethereum’s continued underperformance. Other networks like XRP, TRX, and Solana have performed well, despite lacking major catalysts.

Andre Cronje, a trader shed light on Ethereum’s struggles. He pointed out that Layer 2 solutions fragment liquidity, creating inefficiencies in user experience. Additionally, centralized sequencers continuously dump ETH, adding persistent sell pressure. Other chains offer superior speed and better finality, making them more attractive to developers.

Competitor Chains Gain Traction

Ethereum’s scaling strategy remains uncertain and reliant on Layer 2. Meanwhile, competing chains are openly subsidizing their networks, diverting developers away from Ethereum. Solana, Avalanche, and Base have been shown to be viable substitutes, with better UX and new project incentives.

Cronje emphasized that Ethereum lacks a clear leadership structure. The strongest advocates for the network are often podcasters rather than engineers. This absence of active developer support hinders growth and innovation.

Ethereum’s fate hangs in the balance of its capacity to address these underlying concerns. If it fails to improve user experience and market position, it will lose even more ground. The next few months will determine if Ethereum can reclaim leadership or remain behind competitors.