- Ethereum whales maintain a cost basis at $1,290, providing a historical support level during past downturns.
- Recent whale purchases signal renewed confidence, with $49 million in ETH acquired near the $1,700 level.
- Liquidation data suggests Ethereum may target $1,837 as short positions present a bullish catalyst.
Ethereum’s price has dropped to a two-year low, driven by a broader selloff in risk assets. The recent decline has pushed most retail investors into losses, particularly those who bought above $2,200. This level now marks the average cost basis for most Ethereum holders, according to data from CryptoQuant.
While smaller holders are facing losses, whales holding more than 100,000 ETH remain in profit. Their realized price sits significantly lower at $1,290. Historically, this price point has served as a support level for Ethereum. During the 2022 market downturn, Ethereum fell to $870 before rebounding strongly from whale accumulation zones.
Recent whale activity indicates accumulation
The downward price movement shows whales seem to be adding to their Ethereum assets. SpotOnChain data shows that two big wallets bought 30,000 Ethereum worth more than $49 million during the time Ethereum breached the $1,700 threshold. Major market participants see the present market values as desirable for purchasing rather than for breaking into panicked sales.
Technical analysts have noted that Ethereum recently tested and held a significant support level at $1,500. This price range could mark a potential bottom, especially if Ethereum enters a consolidation phase. Analysts believe that defending this support could trigger a steady rebound.
Derivatives market shows bullish sentiment
Data from the derivatives market adds weight to the bullish outlook. A recent liquidation heatmap indicates that long positions have already been flushed out, reducing the likelihood of further forced selling. A key liquidation zone is now forming around $1,837, which could act as a magnet if buying pressure increases.
Short positions will face liquidation once Ethereum reaches the price level of $1,837. The situation would produce extra investor demand that might activate extra price appreciation. Experts predict this region holds the potential to lead Ethereum toward its upcoming market transformation.
