- Ethereum has re-entered its strongest demand zone since 2021, attracting renewed buying interest from whales and long-term holders.
- The asset’s stochastic RSI has plunged into oversold territory, suggesting a possible rebound if historical demand patterns repeat.
- Accumulation levels remain steady, signaling that major investors are increasing positions despite market fears and current downward momentum.
Ethereum is closing in on a pivotal price level as it hovers in the zone of an established demand area between $1,200 and $1,450. This area has in the past guarded significant upside reversals in major market corrections in both 2022 and 2023.
Weekly Demand Zone Analysis
A tweet from crypto analyst cryptotitans11 noted that ETH consistently bounces at this demand zone and that a breach could push prices into three digits. This observation underscores the importance of the current support level, as it has withstood aggressive selling pressure for several years. The zone’s resilience has long encouraged buyers to step in, providing a cushion against further downside.
The market witnessed ETH trading near its strongest demand zone between $1,200 and $1,450. Historical data show that this region has repeatedly served as a foundation for bullish reversals since 2021. Recent technical charts display a bounce in price within this zone, consistent with past recovery patterns during market corrections.
Chart Patterns and Momentum Indicators
Weekly charts reveal a prominent double-top structure that formed near $4,800 to $4,900 back in 2021. This pattern paved the way for a sustained downtrend that eventually stabilized at the current demand area. The price recently declined sharply, falling below its 200-week moving average and intensifying bearish momentum.
The technical indicators add further depth to the analysis. The Stochastic RSI indicates oversold conditions with the %K line at 0.23 and %D line at 2.54. Such readings typically occur when there is a temporary loss of buying pressure in a downtrend. Meanwhile, the accumulation/distribution (A/D) line remains steady at approximately 39.63 million, suggesting that long-term holders continue accumulating despite the price drop.
A recent update showed ETH was at $1,484.29 at the time of writing, with a 24-hour trading volume of $31.68 billion and a 3.13% decline in price. The seven-day performance indicates a 20.87% decrease. These figures stress the volatility that market participants face in the current environment.
Market Sentiment and Whale Activity
Bulls could prompt a relief rally if buyers reassert control at higher levels. For a turnaround, ETH would need to reclaim the range between $1,600 and $1,700 to shift market dynamics favorably.
Another analyst, Cryptogoos, noted that Ethereum is extremely undervalued and that whales are accumulating aggressively. The tweet suggests that institutional and long-term investors view the current dip as an opportunity to build positions. This active accumulation by larger players might provide the support needed to stabilize the market and prevent a breakdown below the critical demand zone.
ETH now remains at a pivotal threshold. Both technical patterns and sentiment-driven trading will determine its next move amid these volatile market conditions.
