Ether Faces Potential Drop Below $1,900 Despite Rising Investor Demand
According to Cointelegraph, Ether (ETH) has plunged over 52% in a three-month downtrend since peaking above $4,100 on December 16, 2024 (TradingView data). Now, ETH risks falling below $1,900, a critical support zone that could trigger significant buying pressure. Juan Pellicer, a senior research analyst at IntoTheBlock, highlights that around 4.3 million ETH were acquired within the $1,848–$1,905 range, suggesting strong historical support. However, a drop below this level may lead to capitulation, as demand weakens beyond this zone.
Capitulation, a panic-driven sell-off, often signals a market bottom before a potential recovery. While a temporary dip below $1,900 is possible, growing whale accumulation suggests limited downside risk, according to Nansen analyst Nicolai Sondergaard. If ETH breaks below $1,900, further declines may occur, but whales have been accumulating, with WLFI holding substantial ETH holdings, signaling resilience.
Options data also reflects market uncertainty, as institutions hedge for price swings in both directions. Additionally, Glassnode reports a 4% rise in whale addresses (1,000+ ETH) since January 2025, climbing from 4,652 to over 4,843 by March 14, reinforcing strong institutional interest that may help stabilize ETH’s price in the near term.
