Ethereum is navigating a critical phase in the market after shedding more than 14% of its value since September 13. The second-largest cryptocurrency has entered a corrective stage following weeks of strong price surges that carried it to multi-month highs. Despite the recent downturn, sentiment among analysts and investors remains cautiously optimistic, with many expecting ETH to rebound once bullish momentum resurfaces.
One of the most important signals supporting this view comes from CryptoQuant, which reports that the average realized price of Ethereum accumulation addresses is around $2.9K. This level has become a key reference point for traders, as it suggests that long-term holders and accumulation wallets are positioned at a much higher cost basis compared to past cycles. In practical terms, this could act as a strong support zone, reducing downside risk and strengthening confidence in Ethereum’s ability to hold ground.
At the same time, the total balance in these addresses has climbed to 27.6 million ETH, a staggering amount that highlights the scale of conviction among accumulation wallets. This suggests that a large portion of the supply is now held by investors with strong hands, reducing the likelihood of panic selling and providing a stabilizing effect on the market.
Kesmeci notes that, in the worst-case scenario, the $2.9K realized price could act as a robust support zone, offering a defensive line against further downside. However, the coming days will serve as a crucial test for ETH bulls. Holding above current levels will be essential to avoid a deeper correction that could undermine the bullish momentum built up in recent months.
Ethereum (ETH) is showing weakness after its recent decline, with the chart reflecting a sharp selloff from local highs above $4,600 down to the $4,100 area. Currently, ETH is trading around $4,173, sitting just above the 200 EMA at $4,106, which now acts as critical support. A sustained defense of this level is key to preventing a deeper correction.
The 50 EMA at $4,402 has turned downward, highlighting short-term bearish momentum and reinforcing the idea that sellers are in control. Unless ETH can reclaim the 50 EMA decisively, pressure may continue. That said, the fact that the 200 EMA is still sloping upward suggests the long-term trend remains intact, even if the market is entering a corrective phase.
From a technical perspective, the rejection near $4,600 created a lower high, a sign of caution for bulls. However, if ETH manages to stabilize above $4,100 and form a base, a rebound toward $4,400 remains possible; conversely, a break below the 200 EMA could expose the $3,800–$3,900 zone as the next major support.
Featured image from Dall-E, chart from TradingView
