In recent weeks, the cryptocurrency market has witnessed significant fluctuations, particularly with Ether (ETH) facing a notable downturn. Following its peak above $4,100 on December 16, 2024, ETH has dropped by over 52%, navigating through a challenging three-month period. Currently, analysts are closely watching whether Ether will breach the $1,900 threshold, which could catalyze investor activity in this sector.
According to Juan Pellicer, a senior research analyst at IntoTheBlock, there exists a robust demand zone for ETH just below $1,900. He emphasizes that historically, approximately 4.3 million ETH have been acquired in the range of $1,848 to $1,905, marking it as a substantial support level. However, if Ether slides beneath this mark, the likelihood of capitulation could increase, as the demand beyond this range is relatively sparse.
ETH/USD, 1-day chart. Source: Cointelegraph/TradingView
Capitulation, in financial markets, describes a scenario where investors hastily sell off their positions, leading to a notable price plunge. This event often precedes a market bottom, potentially signaling the onset of the next uptrend.
Whale Accumulation Provides Hope Amidst Market Volatility
Although there is a chance Ether could momentarily dip below the $1,900 mark, analysts are not overly pessimistic about further declines. Nicolai Sondergaard, a research analyst at Nansen, suggests that growing whale accumulation could buffer Ether from sinking further. He notes that if ETH cannot maintain the $1,900 level, further downside is indeed probable, yet significant whale activity presents a potential stabilizing influence.
Sondergaard explains that whales have recently been acquiring substantial amounts of ETH, and this trend is corroborated by the increases in whale addresses—those with more than 1,000 ETH—which have risen over 4% year-to-date. From 4,652 addresses at the beginning of the year, this number has climbed to over 4,843 as of mid-March 2025.
Ethereum: Whale Address Count [Balance >1k ETH]. Source: Glassnode
As market participants keep a close eye on ETH’s price movements, it remains crucial to analyze the ongoing supply and demand dynamics. Investor sentiment, whale activities, and on-chain metrics will play pivotal roles in determining whether Ether can not only stabilize but eventually recover from its current downtrend.
