How Did Ethereum Whales Behave in the Recent Drop? What Is the Most Critical Level to Watch for ETH? Glassnode Explained!
One of those that suffered the biggest decline during the correction in Bitcoin and altcoins was undoubtedly Ethereum (ETH).
While the Ethereum price retreated to the $2,000,000 level, the increasing expectation before the White House Crypto Summit to be held on March 7 has led the ETH price to reach the $2,300 level.
While Ethereum has been experiencing volatile movements, on-chain analytics firm Glassnode has explained what ETH investors have been doing during the recent price fluctuations.
Stating that Ethereum investors are actively managing their positions, Glassnode said that it lowered its cost basis by purchasing the dip.
After Ethereum surged to $2,500 before the recent drop, it pulled back to $2,050, a level seen in November 2023.
Glassnode said that according to data, Ethereum investors with an initial cost base of $3,500 sold throughout February but then bought the dip and re-entered at $2,500 and $2,050.
At this point, Glassnode said investors have lowered their cost basis by 10% to $3,200.
Additionally, Glassnode said that a major resistance area has formed at $2,800, where investors have accumulated around 800,000 ETH. This suggests that $2,800 will be a critical level for investors to watch if the price of Ethereum recovers.
Signals Bullishness for Ethereum!
On-chain analytics firm Santiment also weighed in on Ethereum, saying that the downward trend in social media signals a potential bullish trend for ETH.
According to Santiment, Ethereum sentiment has fallen to yearly lows, lagging behind other top cryptocurrencies in terms of market cap. However, Santiment noted that sentiment on social media for ETH has deteriorated, which is a good sign for ETH and points to a potential reversal in price.
🐻 Ethereum sentiment has declined to year-low levels as the asset has underperformed relative to other top caps. For those patiently holding their $ETH, the bearishness being projected across social media is a good sign of a potential turnaround once crypto markets stabilize. pic.twitter.com/iRaKTvb0Tu
— Santiment (@santimentfeed) March 6, 2025
*This is not investment advice.
