According to Cointelegraph, Ether (ETH) has experienced a significant price drop, falling over 52% during a three-month downtrend after reaching a peak above $4,100 on December 16, 2024, as per TradingView data. The cryptocurrency is now facing the possibility of another correction below the $1,900 mark, which could trigger substantial buying pressure. Juan Pellicer, a senior research analyst at IntoTheBlock, highlights that on-chain metrics indicate a strong demand zone for ETH just below $1,900. Historically, around 4.3 million ETH were purchased within the $1,848–$1,905 range, suggesting considerable support at this level. However, if Ether drops below this threshold, the risk of capitulation increases, as demand beyond this zone appears to be much weaker.
In the financial markets, capitulation refers to investors selling their positions in a panic, leading to a significant price decline and signaling an imminent market bottom before the start of the next uptrend. Despite the potential for a temporary correction below $1,900, Ether is unlikely to experience further downside due to growing whale accumulation, according to Nicolai Sondergaard, a research analyst at Nansen. Sondergaard notes that if ETH fails to maintain the $1,900 level, further declines could occur. However, whales have been accumulating, and WLFI holds substantial amounts of ETH, indicating that price action has not been favorable.
This behavior is also reflected in recent options data, where larger players and institutions are positioning themselves for moves in either direction, highlighting the market's uncertainty regarding Ether's future trajectory. Whale addresses on Ethereum have started to recover since the beginning of 2025. Glassnode data reveals that whale addresses with at least 1,000 ETH, equivalent to $1.92 million, have increased by over 4% year-to-date, rising from 4,652 addresses on January 1 to over 4,843 addresses by March 14. This trend underscores the growing interest and accumulation among larger investors, which may play a crucial role in stabilizing Ether's price in the near term.
