Ethereum (ETH) Price Continues to Consolidate Under $2,000

Ethereum's native token, Ether (ETH), continues to consolidate under $2,000, which some traders view as a psychological level.

The article discusses the possibility of Ethereum traders jumping ship if the price falls below $1,900. It also mentions that the cryptocurrency's token, Ether (ETH), continues to consolidate below $2,000, a psychological level.

If the price drops below $1,843, there could be rising capitulation fears, according to data from IntoTheBlock. The data analytics platform also found that Ethereum holders accumulated 3.56 million ETH between $1,900 and $1,843, with an average price of $1,871.

If Ether drops below $1,843, there could be rising capitulation fears. The data analytics platform also found that Ethereum holders accumulated 3.56 million ETH between $1,900 and $1,843, with an average price of $1,871.

If we look at the chart below, the current accumulation value stands at $6.65 billion. This indicates that ETH’s price has strong support between $1,900 and $1,843, which can potentially act as the bullish reversal zone.

However, if we zoom out, we can see that the size and volume of ETH accumulation are significantly lower below $1,843.

This chart also shows the possibility of increasing capitulation fears if ETH falls below $1,843. It is noteworthy that if ETH manages to consolidate for a prolonged period above $1,843, the likelihood of a deeper correction increases exponentially.

Moreover, the percentage of Ethereum addresses in profit dropped to its lowest level since the start of the decade. It is the lowest value since December 2022 at just under 46%.

A low percentage of profitable addresses has historically indicated a price bottom for Ethereum.

Given the high ETH accumulation and fewer profitable addresses, these factors may act as bullish signals. As a result, the likelihood of Ethereum consolidating below $1,843 in the long term is decreasing.

Hitesh Malviya, the founder of DYOR crypto, said it is not a “great time to bearish on ETH.” In an X post, Malviya highlighted the recent rise of real-world assets (RWAs) in the industry, with a 50.9% increase in growth over the past 30 days and an 850% yearly increase, with Ethereum and ZKsync capturing more than 80% of the total market share.

According to Alphractal, a crypto data analysis website, at press time, the long/short ratio for Ether futures on major exchanges stands at 1.3, indicating a balanced but cautious market.

Whales vs. Retail ratio heatmap. Source: X

As the chart above shows, the largest investors are more inclined toward taking long positions, whereas smaller investors are in the process of de-leveraging. De-leveraging means unwinding risky, borrowed positions, which lowers market volatility and interest in leveraged trading.