Ethereum Price Struggles at Two-Year Low As Whale Average Cost Basis Hints at Drop to $1,290

Ethereum Price Struggles at Two-Year Low As Whale Average Cost Basis Hints at Drop to $1,290

Ethereum (ETH) is currently facing significant price challenges, trading at $1,569.06, which is near its two-year low. Analysts suggest that the cryptocurrency may drop further to test support at $1,290, which represents the average cost basis for whales holding more than 100,000 ETH. This level could act as a critical point for a potential rebound.

Key Points

• Current Price: Ethereum is trading at $1,569.06, showing slight recovery from its day-low of $1,544.38.
• Whale Cost Basis: The average cost basis for whales holding over 100K ETH is $1,290. Historically, this level has provided strong support during market downturns[1][2].
• Market Sentiment: Most Ethereum holders are experiencing losses after the price dropped below $2,200. Whales remain profitable but could sell to minimize risks[1][2].
• Bullish Predictions: Analysts forecast that Ethereum may rebound strongly after testing support levels, potentially surpassing $2,000 in the medium term[1][3].

Highlights

1. Price Decline: Ethereum is struggling after a major sell-off in risk assets and has broken below key investor cost basis levels.
2. On-chain Metrics: The realized price of whales ($1,290) is seen as a critical support level where accumulation or selling pressure might dictate future movements[2].
3. Historical Trends: Similar patterns were observed during past market crashes, such as the Terra Luna collapse in 2022 when ETH rebounded after testing lower support levels[1].
4. Whale Activity: Despite bearish trends, some whale addresses have accumulated ETH during recent dips below $1,700[1].
5. Derivatives Data: Liquidation heatmaps show reduced risk of forced selling due to wiped-out long positions and indicate potential upward pressure toward $1,837[1].

Analyst Insights

• If Ethereum defends the $1,500 level successfully, it may consolidate before entering a bullish phase.
• Derivatives data suggests buy-side pressure could increase if short positions above $1,837 are liquidated[1][3].

Disclaimer

Cryptocurrency markets are highly volatile and unpredictable. The information provided here is based on historical data and technical analysis but should not be considered financial advice. Investors are advised to conduct independent research and consult with financial advisors before making investment decisions