Ethereum, the titan of the crypto world, is in a bit of a pickle. Ether (ETH), its native token, is dancing around the $2,000 mark—a psychological barrier for many traders. On March 10, ETH slipped below this level, marking its lowest point since October 2023. The big question on everyone’s mind: Can Ethereum bounce back, or are we looking at a potential sell-off if prices dip below $1,900?
The crypto community is buzzing with speculation. According to data from IntoTheBlock, Ethereum holders have amassed a whopping 3.56 million ETH between $1,900 and $1,843. This accumulation zone, worth about $6.65 billion, could act as a safety net, preventing further price drops. But if ETH falls below $1,843, panic might set in. Investors could start selling off their holdings at a loss—a phenomenon known as capitulation.
The stakes are high. A drop below $1,843 could trigger a deeper correction, as the support weakens significantly beyond this point. Currently, only 46% of Ethereum addresses are in profit—the lowest since December 2022. Historically, such low profitability has hinted at a price bottom for Ethereum. Could this be a sign of an impending rebound?
Crypto expert Hitesh Malviya believes it’s not the time to be bearish on ETH. He points to the rise of real-world assets (RWAs) in the crypto space, which have grown by 50.9% in just 30 days and 850% over the past year. Ethereum and ZKsync are leading this charge, capturing over 80% of the market share.
Meanwhile, Alphractal’s analysis of the long/short ratio—a measure of futures traders’ sentiment—shows a neutral market. The largest investors are leaning towards long positions, while smaller traders are pulling back from risky bets. With a current ratio of 1.3, the market is cautious but balanced.
In conclusion, Ethereum’s fate hangs in the balance. While the current support levels offer some hope, a slip below $1,843 could spell trouble. Yet, with the rise of RWAs and a neutral market sentiment, there’s still room for optimism. As always in the crypto world, only time will tell.
This article is for informational purposes only and does not constitute investment advice. Always do your own research before making any investment decisions.
