Ethereum (ETH), the second-largest cryptocurrency by market capitalization, may be headed for a decline toward $2,000 based on recent on-chain trends and key support level breakdowns observed by market analysts.
Whale distribution and selling pressure
ETH traded at $2,320 after experiencing a 1.37% drop in the past 24 hours as broader macroeconomic concerns weighed on the crypto market. The Federal Reserve’s decision to maintain interest rates during its most recent meeting appears to have contributed to the cautious sentiment among investors.
The cryptocurrency faced resistance near $2,400 on October 28, 2026, after its on-chain transaction volume exceeded $100 billion. Following the rejection at this level, ETH slipped below the $2,300 mark, logging an intraday low of $2,290.
Ali, a well-known crypto analyst, stated that Ethereum could retrace nearly 14% from current levels if bearish momentum persists. He highlighted the role of large holders, commonly referred to as whales, in the recent price action. Over recent days, whales have reduced their ETH holdings by approximately 160,000 ETH, which is valued at more than $348 million. This substantial distribution has intensified the selling pressure in the market.
Ali noted that increased transfers of Ethereum to exchanges and whale distribution may contribute to downward price momentum, with the risk of ETH sliding toward $2,000 if current trends continue.
In addition, on-exchange ETH reserves have grown by roughly 100,000 ETH, equivalent to around $240 million. More tokens held on centralized exchanges make it easier for investors to sell, increasing the likelihood of further price declines.
| Metric | Change | ETH equivalent | USD value |
|---|---|---|---|
| Whale holdings | -160,000 | 160,000 | $348 million |
| Exchange inflow | +100,000 | 100,000 | $240 million |
Technical breakdown and key support levels
The analyst cited the loss of the critical $2,385 support as a contributor to the bearish outlook. ETH has reportedly broken down from a right-angled ascending broadening formation on the daily chart, which typically signals further downside. Unless Ethereum regains the $2,385 level and exchange balances decrease, the next technical target could be $2,000.
According to chart patterns, if selling continues and exchange reserves remain elevated, Ethereum could fall as low as $2,000.
Delay of Glamsterdam upgrade on Hoodi testnet
The previously scheduled Glamsterdam upgrade on the Hoodi testnet was postponed indefinitely. The upgrade had been planned for October 26, 2026 at 17:42:48 UTC, corresponding to epoch 132,352, but core developers decided during ACDE #248 to delay the transition. This was to allow for further review of how EIP-8037 might interact with existing mainnet smart contracts.
As a result, both the Amsterdam execution layer activation and the Gloas consensus layer activation have been removed from the current Hoodi testnet schedule. Additionally, the gas-limit increase to 200 million, initially slated for the same epoch, has been put on hold. Core developers plan to announce a revised Hoodi activation timeline at a later date.
Mini dictionary: Hoodi testnet, a network used by Ethereum developers to trial upgrades and new features before they are deployed on the main Ethereum blockchain. Testnets enable developers to test changes without impacting the live network.
