The price of Ethereum has dropped to $2800, which, according to experts, is an important support level for this cryptocurrency. Analysts note that this price corresponds to the average realized prices at which both retail investors and large market participants previously purchased.
This is reported by Business • Media
Accumulation Dynamics and Investor Behavior
According to analysts’ findings, historically, such price levels have often marked the bottom of market cycles. Therefore, $2800 could serve as a starting point for a potential short-term price recovery. At the same time, despite the decrease in value, large investors, known as whales, continue to actively accumulate Ethereum.
“Retail wallets are selling, while whales holding over 10,000 ETH continue to accumulate even amid falling prices. This indicates a clear shift in supply from short-term traders to larger long-term holders — a classic sign of ongoing redistribution,” stated CryptoQuant.
Position Liquidations and Potential for a Short Squeeze
Experts also note a significant reduction in the number of long position liquidations even as local lows are updated. This demonstrates a gradual decrease in pressure from forced selling. At the same time, there is an increase in open short positions in the market. According to analysts, under such conditions, even a slight price increase could trigger an avalanche of short liquidations, posing a risk of a short squeeze due to low liquidity in the order book.
Earlier, Vitalik Buterin warned about potential risks for Ethereum associated with the actions of large investors.