Following a sharp sell-off, Ethereum is showing early signs of stabilization, but on-chain data presents a more cautious outlook. A key bullish metric has plummeted by 90%, suggesting the recent rebound may lack conviction. If these trends continue, a further decline could see the price testing the $1,500 level. This is concerning for investors.

The Ethereum price has already dropped nearly 37% since mid-January. While the price action has remained within a falling wedge pattern, a key indicator of long-term holder behavior has weakened. This suggests that the current rally is likely speculative. A sustained break below $2,160 would further validate the bearish outlook.

Further, Net Unrealized Profit/Loss (NUPL) data shows that profits have nearly vanished. This indicates that a large-scale capitulation has not yet occurred, and there may be room for further downside. The surge in exchange transfers during the recent rebound suggests that many holders are using the bounce to sell, rather than accumulate.

With these factors combined, the $1,500 level is back in play. Investors should watch the $2,250 and $2,160 levels. A sustained move above $2,690 is needed to shift the narrative. Until then, every bounce may present an exit opportunity. The crypto market remains volatile, and traders should proceed with caution.