Ether might fall beneath $1.9k “strong” demand zone, analysts eye capitulation

Ether dangers one other decline beneath $1,900, which can open up a big quantity of investor demand, which can catalyze Ether’s restoration from its three-month downtrend

Ether (ETH) worth fell over 52% throughout its three-month downtrend after it peaked above $4,100 on Dec. 16, 2024, TradingView information reveals.

Whereas one other correction beneath $1,900 is on the horizon, this may occasionally unleash vital shopping for stress, in response to Juan Pellicer, senior analysis analyst at IntoTheBlock.

“Onchain metrics reveal a strong demand zone for ETH slightly below $1,900,” the analyst informed Cointelegraph, including:

“Traditionally, round 4.3 million ETH had been purchased within the $1,848–$1,905 vary, signaling substantial help. If ETH drops beneath this degree, capitulation dangers rise, as demand past this zone seems a lot thinner.”

In monetary markets, capitulation refers to buyers promoting their positions in a panic, resulting in a big worth decline and signaling an imminent market backside earlier than the beginning of the subsequent uptrend.

Associated: Bitcoin wants weekly shut above $81K to keep away from draw back forward of FOMC

Ether unlikely to see extra draw back beneath $1.9k amid rising whale accumulation: analyst

Whereas Ether may even see a brief correction beneath $1,900, it’s unlikely to fall a lot decrease as a result of rising whale accumulation, in response to Nicolai Sondergaard, analysis analyst at Nansen.

“It does appear probably that if ETH is unable to carry the $1,900 degree that we might see additional draw back,” the analyst informed Cointelegraph, including:

“Supposedly whales have been accumulating, and WLFI additionally holds substantial quantities of ETH, and regardless, worth motion has not been favorable.”

This habits was additionally seen in latest choices information the place bigger gamers/establishments had been positioning themselves for strikes in both course, which reveals how unsure the market is about the place ETH goes,” added the analyst.

Associated: FTX liquidated $1.5B in 3AC belongings 2 weeks earlier than hedge fund’s collapse

Whale addresses depend on Ethereum began staging a restoration because the starting of 2025.

Whale addresses with at the least 1,000 ETH or $1.92 million, rose over 4% year-to-date, from 4,652 addresses on Jan. 1 to over 4,843 addresses on March 14, Glassnode information reveals.

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