Ethereum investors who bought at higher price levels are now struggling to inject new capital into the market, raising doubts about the cryptocurrency’s ability to regain momentum, according to Chinese on-chain analyst Murphy.

Murphy shared data indicating that traders who entered between January and February 2025 did so at an average price of $3,200 to $3,500. A particularly large group accumulated roughly 1.66 million ETH, pushing their cost basis to $3,475. Despite Ethereum’s drop to $1,900, these investors refrained from buying more and currently hold 1.94 million ETH, bringing their average entry point down to $3,150.

Another group that bought in mid-February at prices between $2,600 and $2,800 has responded differently. As ETH slipped below $2,300, many began liquidating their holdings, leaving only two key price levels—$2,800 with 1 million ETH still in play and $2,630 where 850,000 ETH remains untouched.

With Ethereum continuing its downward trajectory, demand has weakened significantly, particularly after the price dropped below $2,000. On-chain data suggests that new buying interest has largely vanished at these lower levels.

Murphy notes that investors who previously accumulated ETH at higher prices have run out of purchasing power, having repeatedly tried to lower their cost basis. The $1,850 mark represents an important threshold, as many long-term holders who entered the market two years ago tend to repurchase at this level to mitigate losses, creating a potential support zone. However, if ETH fails to hold above $1,850, it could slide further, possibly testing $1,600 or even $1,250, where older accumulations from three years ago might provide the last major support.

For Ethereum to stage a meaningful recovery, investor confidence in its long-term value must be restored. Without a renewed belief in its potential, large holdings at $2,630, $2,800, and $3,150 could act as formidable resistance, making it difficult for ETH to regain upward momentum.

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