Ethereum briefly plunged below the $2,000 threshold this week for the first time since March 29. While the price has since stabilised and is currently trading near $2,002, it still remains almost 60% below August’s high of nearly $5,000. However, data indicate that the largest holders of ETH are once again in a phase of accumulation. Wallets holding a minimum of 100,000 Ethereum now collectively possess 17.41 million ETH, marking the highest level observed in the past nine weeks. These holdings constitute 22.03% of Ethereum’s total supply and represent a peak not seen in the past 10 weeks.
The latest findings emerge following Santiment’s report indicating that the asset’s decline beneath $2,000 prompted a surge of “buy the dip” sentiments among retail traders. According to the analytics firm, crypto markets typically respond to sharp declines in two manners: either fear prevails, leading traders to abandon the asset, or optimism emerges as traders perceive lower prices as a buying opportunity. The second reaction seemed to be influencing sentiment surrounding ETH, despite the recent weakness. This indicated that retail traders were growing more confident that the decline was viewed as a discounted entry point rather than a signal of potential further downside.
However, Santiment cautioned that heightened optimism among the crowd has historically served as a bearish indicator, as retail traders frequently misinterpret market direction during volatile phases. The firm indicated that a more favourable buying opportunity could arise as the current fear of missing out diminishes and market sentiment transitions into a state of panic, which it characterised as a more conventional scenario observed near market bottoms. Bearish technical signals have not entirely vanished from the market.
Crypto analyst Ali Martinez stated that Ethereum may experience increased downside pressure if it achieves a weekly close beneath the $1,850 threshold. Based on the broader channel structure, Martinez identified two potential downside targets subsequent to the rejection. The first target is positioned at approximately $1,560, identified as interim structural support, while the second target is located near $1,070, representing the lower boundary of the crypto asset’s multi-year range.