Ethereum price recently fell below $1,500 for the first time since March 2023. This decline led to a surge in selling activity, with many traders choosing to cut their losses. A key whale metric now hints that ETH may drop to the next support level of $1,290 before making a significant rebound.
Ethereum Whale Average Cost Basis Hints at Drop to $1,290
Data from CryptoQuant shows that most Ethereum holders, excluding whales, have been sitting on massive losses since ETH plunged below $2,200. This is a key Ethereum price level that marks the average cost basis at which most traders purchased Ethereum.
Meanwhile, the realized price of whales holding more than 100,000 ETH lies much lower at $1,290. As Ethereum price struggles at the multi-year lows and shows signs of plunging further, whales may begin to dump their holdings to minimize losses. This makes it likely for ETH to drop and find support at $1,290.
The CryptoQuant analysis identified that Ethereum has previously dropped to find support at the realized price of whales. For instance, in 2022, during the Terra Luna collapse, ETH price dropped to test support at $870 before making a strong rebound.
However, on-chain data indicates that whales remain bullish. This cohort quickly accumulated during the recent dip. According to SpotOnChain, Ethereum’s drop below $1,700 led to two major whale addresses buying 30,000 ETH valued at more than $49 million.
Analysts Remain Bullish on Ethereum Price
Analysts remain bullish that Ethereum price will register a strong rebound, and potentially reclaim levels above $2,000.
One analyst observed that after the recent crash, ETH is now mimicking the March 2020 market crash that saw the price forming a local bottom.
Trader Crypto General shared a similar Ethereum price prediction, noting that after the recent drop, Ethereum price tested a major support level at $1,500. If ETH defends this support level, it will enter into consolidation before being followed by a massive pump.
Amid these bullish projections, it is likely that Ethereum price will defend levels above $1,400 and avoid a crash to $1,000.
Ethereum Derivatives Data Shows a Bullish Outlook
The derivatives market showed a bullish outlook towards Ethereum price. The liquidation heatmap with a seven-day lookback period shows that ETH has wiped out all the long positions after the recent crypto market crash. This removes the risk of further dips due to forced selling.
At the same time, there is a hot liquidation zone above price at $1,837. This zone might act as a magnet, that may push ETH higher.
The $1,837 price level is also where many short positions on Ethereum will be liquidated if the altcoin rallies higher. The liquidation of these short positions will increase the buy-side pressure and spark notable price gains.
To sum up, Ethereum price may be poised to make a rebound despite the support level for whales standing at $1,290. Derivatives data and the price prediction shared by analysts indicate that it might make a strong rebound.
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