Ether is at risk of another drop below $1,900, which could trigger a wave of investor interest and potentially facilitate Ether’s rebound from its three-month downtrend.
The price of Ether (ETH) has plummeted more than 52% during its three-month decline, following a peak above $4,100 on December 16, 2024.
As it approaches the possibility of another correction below $1,900, this situation might generate considerable buying pressure, according to a leading research analyst.
ETH/USD, 1-day chart.
“On-chain indicators show a strong demand zone for ETH just below $1,900,” the analyst remarked, adding:
“Historically, about 4.3 million ETH were acquired in the $1,848–$1,905 range, indicating considerable support. If ETH falls below this level, the risk of capitulation increases, as demand seems much sparser beyond this point.”
In/Out of the Money around price.
In financial contexts, capitulation refers to a scenario where investors sell off their holdings in a panic, resulting in a significant price drop and potentially marking the end of a market decline before the next upward trend begins.
Ether unlikely to face further declines below $1.9k with increasing whale accumulation: analyst
While Ether may experience a short-term correction below $1,900, a more significant decline seems improbable due to rising whale accumulation, as stated by another research analyst.
“If ETH fails to maintain the $1,900 level, further downside is likely,” the analyst indicated, adding:
“Whales appear to be accumulating, and significant amounts of ETH are held by certain large entities. Regardless, the price activity has not been encouraging.”
This pattern was also evident in recent options data, where larger players/institutions positioned themselves for potential movements in either direction, emphasizing the market’s uncertainty regarding ETH’s trajectory, the analyst noted.
Whale addresses on the Ethereum network began to show signs of recovery at the start of 2025.
Ethereum: Whale Address Count [Balance >1k ETH].
The number of whale addresses holding at least 1,000 ETH (approximately $1.92 million) increased over 4% year-to-date, from 4,652 addresses on January 1 to over 4,843 addresses by March 14.