Ethereum Drops 11%: Accumulation During the Decline
Ethereum loses 11 per cent and falls below $2500, but investors take the opportunity to accumulate. Trend analysis and future prospects.
Ethereum failed to maintain the bullish trend after breaking through the $2800 resistance. The price of the ETH token fell sharply due to bearish conditions, dropping below $2500.
However, this downtrend offered Ethereum investors an opportunity to accumulate the token at a lower value.
Ethereum Investors Take Advantage of the Drop
According to data from the Cost Basis Distribution (CBD), Ethereum investors are showing confidence in the token despite the price drop. Glassnode said ETH's CBD indicates a steady acquisition by investors to capitalise on profits. Many cost basis indicators are falling, suggesting that investors are benefiting from this down phase.
The data shows strong support at $2,632, where more than 0.7 million ETH have been accumulated, and resistance at $3,149, with an accumulation value of 1.22 million ETH. These support and resistance levels are crucial to the stability of Ethereum's price, as they indicate where large investors are buying and selling the token.
Despite the decline, the macroeconomic momentum of ETH remains solid. The net balance of exchanges is showing a significant shift, with some 178,500 tokens withdrawn from exchanges in the past two days.
This shift indicates that investors are moving their assets to cold wallets with the intention of holding them for the long term and making future gains. Outflows have totalled $444 million, signalling strong investor confidence in a future recovery in Ethereum's price once the bearish phase is over.
Currently, the token is trading at $2406, marking an 11% drop in the past 24 hours. The drop follows an attempt to break above $2793, keeping ETH in a three-month downtrend. However, the future price shows signs of a possible recovery, despite still being below $2500.
If Ethereum's price manages to exceed $2600, it could trigger a rebound and push it above $2793, with the possibility of reaching $3000 again.
Conversely, if ETH fails to recover the $2654 level and continues to move in a bearish phase, it could fall further below $2350. In that case, there would be further losses, invalidating the bullish trend that many investors have been waiting for.
Tom Lee's BitMine strategically accumulates 72,000 ETH ($281M) in the recent crash, bringing its holdings to 3.03M ETH. The institutional accumulation pushes exchange reserves to lows. Tom Lee and Arthur Hayes predict massive price increases, seeing ETH between $10,000 and $15,000.
Ethereum failed to maintain the bullish trend after breaking through the $2800 resistance. The price of the ETH token fell sharply due to bearish conditions, dropping below $2500.
However, this downtrend offered Ethereum investors an opportunity to accumulate the token at a lower value.
Ethereum Investors Take Advantage of the Drop
According to data from the Cost Basis Distribution (CBD), Ethereum investors are showing confidence in the token despite the price drop. Glassnode said ETH's CBD indicates a steady acquisition by investors to capitalise on profits. Many cost basis indicators are falling, suggesting that investors are benefiting from this down phase.
The data shows strong support at $2,632, where more than 0.7 million ETH have been accumulated, and resistance at $3,149, with an accumulation value of 1.22 million ETH. These support and resistance levels are crucial to the stability of Ethereum's price, as they indicate where large investors are buying and selling the token.
Despite the decline, the macroeconomic momentum of ETH remains solid. The net balance of exchanges is showing a significant shift, with some 178,500 tokens withdrawn from exchanges in the past two days.
This shift indicates that investors are moving their assets to cold wallets with the intention of holding them for the long term and making future gains. Outflows have totalled $444 million, signalling strong investor confidence in a future recovery in Ethereum's price once the bearish phase is over.
Currently, the token is trading at $2406, marking an 11% drop in the past 24 hours. The drop follows an attempt to break above $2793, keeping ETH in a three-month downtrend. However, the future price shows signs of a possible recovery, despite still being below $2500.
Possible Scenarios for Ethereum
If Ethereum's price manages to exceed $2600, it could trigger a rebound and push it above $2793, with the possibility of reaching $3000 again.
Conversely, if ETH fails to recover the $2654 level and continues to move in a bearish phase, it could fall further below $2350. In that case, there would be further losses, invalidating the bullish trend that many investors have been waiting for.
Read Next
Tom Lee's BitMine Doubles on Ethereum: Whale Buying Dip Aiming at $15,000
Tom Lee's BitMine strategically accumulates 72,000 ETH ($281M) in the recent crash, bringing its holdings to 3.03M ETH. The institutional accumulation pushes exchange reserves to lows. Tom Lee and Arthur Hayes predict massive price increases, seeing ETH between $10,000 and $15,000.
Crypto market recovery: Bitcoin regains $111,000, Ether exceeds $4,000 - now what?
Ethereum Price Analysis: Institutional Investors Add $418 Million while Bulls Aim for $7,000
Bitmine Immersion Technologies Defies Collapse: Acquired $480M in ETH
After the October market crash triggered by US tariffs, Bitmine bought the dip of ETH at $3.728. The company now holds almost 2.5% of all Ethereum