Ethereum investors have been actively managing their positions during the latest price fluctuations, according to blockchain analytics firm Glassnode. After Ethereum’s price surged to $2,500, it retraced to around $2,050, a price range not seen since November 2023. The data reveals that investors have been strategically moving capital across different price levels, positioning themselves to navigate the dip effectively.

Strategic Position Adjustments by Key Holders

Glassnode’s three-month analysis shows that Ethereum investors who initially acquired ETH at $3,500 made substantial adjustments in February. These investors, having entered the market during the peak at $2,500, repositioned themselves around the recent low of $2,050. Their current holdings of 1.75 million ETH are now at an average cost basis of $3,200, a reduction of roughly 10% from their original entry price.

In addition to these adjustments, Glassnode noted that on March 1, approximately 500,000 ETH were acquired at around $2,200. However, these holdings were quickly redistributed when the price touched $2,500. A major resistance zone has emerged at $2,800, where around 800,000 ETH were accumulated, indicating that $2,800 could become a critical level for Ethereum’s price recovery.

Whale Activity Indicates Growing Accumulation

Ethereum’s accumulation trend among whales also continues to grow. Market analyst Ted highlighted that a whale recently purchased 17,855 ETH, valued at approximately $36 million, at an average price of $2,054. This investor’s total Ethereum holdings now surpass $2.5 billion, signaling that large investors view the current price as an attractive entry point.

Ethereum’s Favorable Position Despite Challenges

CryptoQuant analyst MACD believes that Ethereum remains in a favorable position despite its recent price struggles. According to MACD, the MVRV ratio has dipped below 1, placing Ethereum in an undervalued zone. Historically, this level has preceded significant price surges in previous bull cycles. Moreover, MACD pointed out a sharp increase in Ethereum accumulation addresses—addresses that consistently receive ETH but never withdraw it—which suggests that institutional investors are building their positions amid the current market downturn.

However, MACD also acknowledged that broader economic conditions, such as U.S. liquidity policies and monetary strategies, could continue to exert downward pressure on asset prices. Therefore, while Ethereum shows bullish signs, its short-term trajectory remains influenced by external factors.

Ethereum as an Attractive Buy Opportunity

Despite the bearish sentiment surrounding Ethereum’s current price, several analysts view it as an ideal buying opportunity. Technical analyst Crypto Rover highlighted that Ethereum has been trading within a horizontal channel since March 2024. After touching the lower trendline again, Ethereum could potentially break to the upside, echoing previous trend reversals. According to Crypto Rover, this represents the biggest buy opportunity for Ethereum.

Furthermore, Da Crypto General emphasized Ethereum’s performance against Bitcoin (ETH/BTC), noting that the pair has reached a critical support level and is displaying bullish momentum after retesting the discount zone. Both short-term traders and long-term investors are now eyeing Ethereum as a potentially profitable investment.

Conclusion

Ethereum’s recent price dip has seen key holders adjust their strategies, including significant whale accumulation and a notable increase in institutional interest. Despite the challenges posed by broader economic conditions, technical indicators and investor sentiment suggest that Ethereum remains a strong buy opportunity. As investors wait for a breakout, the $2,800 resistance level and key support zones are crucial for Ethereum’s price recovery in the coming weeks.

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