Ethereum (ETH) is currently finding stability in the $1,800–$1,900 range following a prolonged period of downward movement. Insights into whale accumulation and decreasing leverage suggest a lessening of downside risks, while the strong fundamentals of Ethereum support the possibility of a shift from decline to consolidation.
Ethereum (ETH) is displaying early indications of stabilization after enduring weeks of consistent downward pressure.
The price has been hovering around the $1,800–$1,900 region, which has frequently served as a support level during recent sell-offs.
This price level holds significance as it signifies a point where sellers seem to be losing steam.
Despite the overall cautious market sentiment, Ethereum’s behavior hints at a diminishing panic phase.
In the past month, ETH has experienced a significant decline from its previous highs, erasing a considerable portion of its earlier gains.
This decline has pushed sentiment into a bearish territory.
However, sharp declines often pave the way for reassessment rather than continuous downward spirals.
Currently, Ethereum seems to be testing a local bottom rather than accelerating further downwards.
ETH Technical Analysis
On the chart, Ethereum has been consolidating after rebounding from recent lows.
This period of sideways movement often follows substantial sell-offs.
Momentum indicators indicate a reduction in selling pressure, although bullish momentum remains limited.
Nevertheless, ETH is still trading below crucial moving averages, confirming that the broader trend has not yet fully shifted.
Simultaneously, the distance from these averages highlights the extent to which the downside movement has stretched.
Historically, similar conditions have preceded relief rallies or extended periods of accumulation.
The support around the $1,800 range has held firm despite multiple tests, reinforcing its significance.
A clear break below this level could potentially lead to further losses.
Currently, buyers seem willing to step in at these levels.
However, resistance remains strong near the psychological barrier of $2,000.
A sustained breakthrough above this level would likely improve short-term sentiment.
Until then, ETH remains in a cautious recovery phase rather than a confirmed uptrend.
On-Chain Activity Indicates Whale Accumulation
Besides price movements, on-chain data reveals that large holders have been steadily increasing their ETH holdings.
This behavior often signifies long-term confidence in the asset.
Although whale accumulation does not guarantee immediate price appreciation, it does suggest that experienced players perceive value at current levels.
Additionally, derivatives data indicate a decline in open interest, signaling reduced leverage in the market.
A decrease in leverage typically results in less forced selling during periods of volatility. Notably, Ethereum founder Vitalik Buterin has been selling his ETH during the bearish market.
In January, Vitalik Buterin allocated 17,000 ether, valued at approximately $43 million, for privacy projects. As of now, his wallet balance has decreased by a similar amount, and the token he has been selling has lost more than a third of its value.
Arkham Intelligence data shows that Buterin’s attributed wallets held around 241,000 ETH at the beginning of February. This figure has now dropped to 224,000 ETH following a consistent series of outflows throughout the month, including $6.6 million over three days earlier in February and an additional $7 million over the past three days alone.
While Vitalik’s selling activity may impact sentiment, its actual effect on overall liquidity has been minimal.
Significantly, Ethereum’s daily trading volume has remained substantial enough to absorb these sell-offs.
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