Ethereum has been navigating key phases in the market since September 13th, after cutting more than 14% of its value. The second largest cryptocurrency has entered the corrective phase after carrying a strong price surge for weeks to months’ highs. Despite the recent recession, sentiment between analysts and investors remains cautiously optimistic, with many hoping that bullish momentum will rebound when it resurfaces.
One of the most important signals that support this view comes from Cryptoquant. This reports that the average realised price for Ethereum storage addresses is approximately $2.9,000. This level has become an important reference point for traders as it suggests that long-term holders and accumulation wallets are placed on a much higher cost basis compared to past cycles. In reality, this can act as a strong support zone, reducing downside risks and strengthening your confidence in your ability to retain Ethereum status.
The revision stage also fits in the broader narrative of market integration. This integration often resets the indicator that the temporary pullback has overheated before the next meeting. While volatility can last in the short term, ETH fundamentals, combined with resilient on-chain signals, will continue to promote hopes of recovery and new strength over the coming weeks.
Ethereum accumulation levels indicate important support
According to top analyst Burak Kesmeci, the realised price of Ethereum’s accumulated address has become one of the most important signals in the current market environment. The ETH ETF rally caused the metric to surge significantly, rising from 1.7K to $2.9K over a relatively short period. Such a rapid increase highlights the active position of long-term holders who have accumulated ETH at a higher rating, effectively increasing the overall cost base for this important cohort.
At the same time, the total balance of these addresses rose to ETH 27.6 million. This is an incredible amount that highlights the scale of convictions between accumulation wallets. This suggests that the majority of supply is held in strong hands by investors, reducing the likelihood of panic sales and providing a stabilizing effect to the market.
Kesmeci says in the worst-case scenario, a $2.9,000 perceived price can serve as a robust support zone and provide a defensive line against the downside. However, the upcoming days will serve as an important test for ETH bulls. Overcoming current levels is essential to avoid deeper corrections that could undermine the bullish momentum that has been built up in recent months.
Testing critical support
Ethereum (ETH) has shown weakness after the recent decline, with the chart reflecting sharp selling from the local high above $4,600 to the $4,100 area. Currently, ETH trades around $4,173 and sits above $4,106 just above the 200 EMA. This is currently serving as an important support. This level of sustained protection is key to preventing deeper corrections.
The $4,402 50 EMA turns downwards, highlighting short-term bearish momentum and reinforcing the idea that sellers are in control. Pressure may persist unless ETH can crucially regain 50 EMA. That said, the fact that the 200 EMA is still leaning upward suggests that the long-term trend remains intact even as the market is in the corrective phase.
From a technical standpoint, a refusal of nearly $4,600 created a lower high. However, if ETH is able to stabilize over $4,100 and form the base, it will still be possible to rebound to $4,400. Conversely, breaks below the 200 EMA could expose the $3,800-$3,900 zone as their next major support.
Dall-E special images, TradingView chart
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