Ethereum Price at Risk: Long-Term Accumulation Could Unwind | 2025
Ethereum Price at Risk: Long-Term Accumulation Could Unwind
The real question among investors is whether Ethereum (ETH) is capable of recapturing a portion of its recent losses or whether traders will capitulate if the price falls below $1,900. According to a data analytics platform, Ethereum holders accumulated 3.56 million ETH between $1,900 and $1,843, with an average price of $1,871. Therefore, the current accumulation value currently stands at $6.65 billion. This indicates that ETH’s price has a strong support level between $1,900 and $1,843, which can potentially act as the bullish reversal zone.
Understanding the Support Levels for Ethereum
However, if Ether drops below $1,843, data points to the possibility of rising capitulation fears. Capitulation is a market sentiment where investors tend to panic, selling their positions at a loss during a sharp market correction. If ETH consolidates for a prolonged period under $1,843, the likelihood of a deeper correction increases exponentially. Below $1,843, the size and volume of ETH accumulation are significantly lower, which further illustrates the importance of the $1,900 to $1,843 support range.
Current Market Sentiment and Profitability
Similarly, the percentage of Ethereum addresses under 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.
Expert Insights on Ethereum’s Future
Hitesh Malviya, the founder of DYOR crypto, stated that it is not a “great time to be 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.
Long/Short Ratio Analysis
Alphractal, a crypto data analysis website, reviewed Ether’s current market sentiment based on the long/short ratio, a metric to evaluate the proportion of futures traders betting for price increases (long) versus decreases (shorts). According to the above, the largest investors are more inclined toward taking long positions, whereas smaller investors are in the process of deleveraging. Deleveraging means unwinding risky, borrowed positions, which lowers market volatility and interest in leveraged trading.
Conclusion: Navigating the Ethereum Market
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. For more detailed insights, you can read the original article here.
