Ethereum Faces Growing Pressure as David Hoffman Exits ETH Position

Ethereum (ETH) is facing renewed bearish sentiment after Bankless co-founder David Hoffman revealed that he had sold his ETH holdings. His decision has sparked widespread discussion across the crypto market, especially because Hoffman has long been one of Ethereum’s strongest supporters. According to his analysis, the popular “ETH is money” narrative has already reached its peak, and current market data appears to support his concerns.

ETH is currently trading near $1,975, reflecting ongoing weakness after losing significant value over recent months. On-chain metrics reveal declining network activity, with daily active Ethereum addresses falling sharply from more than 1.5 million earlier in the year to around 544,000. This drop suggests reduced demand for the Ethereum network and aligns with the broader price decline seen since late 2025.

Hoffman remains optimistic about Ethereum’s technology and ecosystem but argues that the blockchain itself benefits applications and Layer-2 networks more than the ETH token. He believes competing networks such as Solana and NEAR have demonstrated how strong fee generation and revenue capture can drive token value. In contrast, Ethereum has gradually lost market share as activity shifts away from the base layer.

Another concerning signal comes from exchange balances. After months of accumulation, ETH supply on exchanges has increased from approximately 7 million to 7.5 million coins. Rising exchange reserves often indicate that investors are preparing to sell, adding further pressure to the market. Combined with weakening network activity, this trend strengthens the bearish outlook.

Technical indicators also suggest caution. Ethereum remains trapped within a descending price channel and recently failed to reclaim key resistance levels. Analysts are closely watching support around $1,920. If that level breaks, ETH could decline toward $1,750, marking one of its weakest performances of 2026. On the other hand, a strong recovery above $2,140 could signal renewed bullish momentum and improve market confidence.

For now, Ethereum investors are monitoring both on-chain data and price action. With declining user activity, increasing exchange supply, and persistent technical weakness, the burden remains on bulls to prove that a sustainable recovery is possible. Until key resistance levels are reclaimed, market sentiment is likely to remain cautious toward ETH.