According to Murphy, a Chinese on-chain data analyst, Ethereum (ETH) investors, who have opened positions at high price levels, have largely exhausted their purchasing power, raising concerns about ETH’s strong recovery capabilities.
Murphy posted statistics on social media, revealing that the average cost base for ETH positions created between January and February 2025 ranges from $3,200 to $3,500. By accumulating around 1.66 million ETH, a large cluster of addresses has significantly increased its holdings to $3,475. The group reduced the average cost to $3,150 without purchasing DIP when ETH fell to $1,900 and was currently holding 1.94 million ETH.
Meanwhile, the address where the position was opened in mid-February 2025 was admission costs ranging from $2,600 to $2,800. The group began offloading its holdings as ETH prices fell below $2,300. Currently, only the $2,800 (ETH 1 million) and $2,630 (ETH 850,000) positions have not been changed.
New demand has weakened significantly as ETH continues its downward trend, particularly as prices fell below $2,000. The data suggests that the interest you buy at these levels has almost disappeared.
Murphy explained that investors who accumulated ETH at higher prices have exhausted their purchasing power after a series of attempts to reduce costs on average. The $1,850 price level represents the cost base of a large group of investors who established the position two years ago. As ETH approaches this level, they tend to buy back the portions previously sold, reducing overall costs and creating support zones. However, if $1,850 cannot be held, ETH could slide to $1,600 or $1,250, with accumulation three years ago capable of providing the last major support, analysts said.
According to Murphy, the market recovery relies on rebuilding investors’ trust in the long-term value of ETH. Without a new consensus, massive accumulations of $2,630, $2,800 and $3,150 could serve as critical resistance and limit potential recovery.
*This is not investment advice.
