Ethereum (ETH) Investors Have Been Actively Managing Their Positions During Recent Price Swings, Says Glassnode

According to the firm, after a sharp rally to $2,500, Ethereum's price retraced to $2,050, a price region the asset last witnessed in November 2023.

Ethereum investors have been actively managing their positions during recent price swings, according to blockchain analytics firm Glassnode.

After a sharp rally to $2,500, Ethereum’s price retraced to $2,050, a price region the asset last encountered in November 2023. As the cryptocurrency attempts to rise above key resistance at $2,800, investors are moving capital strategically across different price levels.

Key Ethereum Holders Focused On $2,050 And $2,500

A three-month analysis of investors who initially acquired ETH at $3,500 reveals significant adjustments to their exposure, particularly in February. Entering at the peak of $2,500 and the recent low of $2,050, these investors now hold 1.75 million ETH at an average cost basis of $3,200. This reduces their initial entry price by approximately 10%.

Furthermore, investors accumulated roughly 500,000 ETH at around $2,200 on March 1, which they quickly redistributed when the price touched $2,500. Additionally, a major resistance zone has emerged at $2,800, where market participants accumulated approximately 800,000 ETH.

If Ethereum’s price rebounds, $2,800 will be a crucial level for traders to watch as it could lead to a continuation of the bear market or spark the next leg of the bull market.

Other analyses confirm the growing accumulation among whales. Market pundit Ted today pointed out that a whale investor recently purchased 17,855 ETH, worth approximately $36 million, at an average price of $2,054.

This brings the investor’s total Ethereum holdings to over 300,000 and his estimated portfolio value to more than $2.5 billion.

This reflects the accumulation trend, as large investors see the current price as an opportunity to lower their average and increase their positions in anticipation of a potential reversal.

ETH Might Be In A Favorable Position

CryptoQuant analyst MACD suggests that ETH might be in a favorable position despite the current price struggles. According to him, the MVRV ratio has dipped below 1, signaling an undervalued zone. In previous bull cycles, this level preceded significant price surges.

However, MACD noted that broader economic conditions still influence the crypto market. U.S. liquidity policies, tariff measures, and monetary strategies could continue to create downward pressure on asset prices.

"The MVRV ratio for #ETH has fallen below 1 again, a level that signaled strong buying opportunities in prior bull cycles. At this valuation, it's no surprise to see major institutional investors loading up on the blockchain. But will the broader economic and geopolitical landscape allow #Bitcoin and #crypto to rise again?" the analyst stated.

Interestingly, looking at Ethereum’s technical patterns, market analyst Crypto Rover suggests the altcoin presents an attractive buy opportunity.

Data from his chart shows that ETH has been trading within a horizontal channel since March 2024.

Every retest of the trendline has led to a sharp move in the opposite direction. Since its surge to $4,097 in December 2024, Ethereum has been in a downward trend, recently touching the lower trendline again.

If history repeats, we could see a breakout to the upside, continuing the cryptocurrency’s recovery from the lows of $1,100, which occurred in December 2024.

Ideal Buying Opportunity For Short-Term And Long-Term

Another analyst, Da Crypto General, highlighted Ethereum’s performance against Bitcoin. According to him, ETH/BTC has reached a major support level and is displaying bullish momentum after retesting the discount zone, rendering it an ideal buying opportunity.

This presents a prime buying chance for both short-term traders seeking scalps and long-term investors wishing to add to their ETH holdings.

"ETH/BTC has reached major support at 0.065, displaying bullish momentum after retesting the discount zone, making it an excellent buying opportunity!" the analyst noted.

This analysis aligns with the belief that in the broader market downturn, altcoins tend to perform poorly against Bitcoin, leading to increased buying pressure as the coins get discounted.

In essence, both analyses converge on the same point: with Ethereum currently available at lower prices compared to previous peaks, it presents an excellent buying opportunity for those seeking to capitalize on the cryptocurrency’s potential for appreciation in the coming months. Nonetheless, it’s crucial to conduct thorough research and consider personal risk tolerance before making any investment decisions.

This article is for informational purposes and does not constitute financial advice. Any investment decisions should be made personally, taking into account individual risk tolerance and investment goals.