Ether risks another decline below $1,900, which may open up a significant amount of investor demand, which may catalyze Ether’s recovery from its three-month downtrend

Ether (ETH) price fell over 52% during its three-month downtrend after it peaked above $4,100 on Dec. 16, 2024, TradingView data shows.

While another correction below $1,900 is on the horizon, this may unleash significant buying pressure, according to Juan Pellicer, senior research analyst at IntoTheBlock.

ETH/USD, 1-day chart. Source: Cointelegraph/TradingView

“Onchain metrics reveal a robust demand zone for ETH just below $1,900,” the analyst told Cointelegraph, adding:

“Historically, around 4.3 million ETH were bought in the $1,848–$1,905 range, signaling substantial support. If ETH drops below this level, capitulation risks rise, as demand beyond this zone appears much thinner.”

In/Out of the Money around price. Source: IntoTheBlock

In financial markets, capitulation refers to investors selling their positions in a panic, leading to a significant price decline and signaling an imminent market bottom before the start of the next uptrend.

Related: Bitcoin needs weekly close above $81K to avoid downside ahead of FOMC

Ether unlikely to see more downside below $1,900 amid growing whale accumulation: analyst

While Ether may see a temporary correction below $1,900, it is unlikely to fall much lower due to the growing whale accumulation, according to Nicolai Sondergaard, research analyst at Nansen.

“It does seem likely that if ETH is unable to hold the $1,900 level that we’d see further downside,” the analyst told Cointelegraph, adding:

“Supposedly whales have been accumulating, and WLFI also holds substantial amounts of ETH, and regardless, price action has not been favorable.”

This behavior was also seen in recent options data where larger players/institutions were positioning themselves for moves in either direction, which shows how uncertain the market is about where ETH is going,” added the analyst.

Related: FTX liquidated $1.5B in 3AC assets 2 weeks before hedge fund’s collapse

Whale addresses count on Ethereum started staging a recovery at the beginning of 2025.

Ethereum: Whale Address Count [Balance >1k ETH]. Source: Glassnode

Whale addresses with at least 1,000 ETH or $1.92 million, rose over 4% year-to-date, from 4,652 addresses on Jan. 1 to over 4,843 addresses on March 14, Glassnode data shows.

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