Ethereum is demonstrating resilience in the market, maintaining its position near a crucial support level of $2800. Analysts point out that this zone corresponds to prices at which both retail and institutional investors have made significant purchases of the asset.
This is reported by Finway
Investor Behavior and Market Dynamics
According to experts, the $2800 level not only reflects the realized prices of market participants but has also frequently served as a “bottom” in past market cycles. Therefore, there is a probability that this mark will again serve as a foundation for potential short-term price growth.
Experts are particularly focused on the activity of so-called “whales” — players who hold more than 10,000 ETH. Despite the recent price decline, they continue to increase their positions, while retail investors tend to lock in losses. This leads to a redistribution of coins from short-term holders to long-term investors.
“Retail wallets are selling, while whales holding over 10,000 ETH continue to accumulate even amid falling prices. This indicates a clear shift in supply from short-term traders to larger long-term holders — a classic sign of ongoing redistribution,” stated CryptoQuant.
Potential for a Short Squeeze in the Ethereum Market
Another important signal has been the decrease in the number of long position liquidations amid the updating of local price lows. This indicates a gradual reduction in selling pressure caused by forced liquidations, which positively affects market stability.
At the same time, the market is witnessing an increase in the number of short positions. Such dynamics create conditions for a sudden rise in the price of Ethereum in the event of even a slight increase in quotes. According to experts, combined with low liquidity, this could trigger a so-called “short squeeze” — a mass liquidation of shorts followed by an upward price impulse for the asset.
Previously, Ethereum co-founder Vitalik Buterin had already warned about potential risks to the blockchain from large investors. However, the current market situation indicates a sustained interest in ETH from key players.