Ethereum Price Dip: Potential for Capitulation?

Ethereum Price Risks Further Dip Below $1900

Ethereum (ETH) has experienced a significant downturn, falling over 52% in the past three months after peaking above $4100 in December 2024. While a further correction below $1900 is a possibility, analysts offer differing perspectives on the implications.

Robust Demand Zone and Capitulation Risk

IntoTheBlock's senior research analyst, Juan Pellicer, points to a robust demand zone just below $1900. Approximately 4.3 million ETH were historically purchased in the $1848–$1905 range. A breach of this level could increase the risk of capitulation—panic selling leading to a sharp price drop, potentially signaling a market bottom.

Image: ETH/USD 1-day chart (Source: TradingView)

Image: In/Out of the Money around price (Source: IntoTheBlock)

Whale Accumulation and Market Uncertainty

Conversely, Nicolai Sondergaard, a research analyst at Nansen, suggests that while a temporary correction below $1900 is possible, a much larger drop is unlikely due to increasing whale accumulation. He notes that whales have been actively accumulating ETH, and options data indicates significant institutional positioning for moves in either direction, highlighting market uncertainty.

Image: Ethereum Whale Address Count (Source: Glassnode)

Growing Whale Activity

Data from Glassnode reveals that the number of whale addresses holding at least 1,000 ETH (approximately $1.92 million as of March 14th) has increased by over 4% year-to-date, rising from 4,652 to over 4,843.

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