Ethereum (ETH) has been navigating a volatile market recently, leaving traders uncertain about its short-term trajectory. However, underlying data suggests that investor sentiment may still be positive, as key accumulation zones are forming at strategic price levels, hinting at potential stabilization and possibly a rebound.

Key Accumulation Zones Point to Market Confidence

Despite the recent price turbulence, Ethereum has seen significant buying activity around two key levels: $2,632 and $3,149. These price zones have become critical support and resistance levels for ETH, offering potential indicators of where the price may stabilize or reverse direction.

One of the key metrics that highlight this confidence is the Cost Basis Distribution (CBD), which tracks the price at which ETH holders acquired their assets. The recent trend indicates that investors have been taking advantage of dips to accumulate Ethereum at lower price points. Specifically, the $2,632 level has emerged as a notable support area, with a significant amount of ETH being acquired around this price.

Recent data from Glassnode revealed that at $2,632, approximately 786,660 ETH has been accumulated, which suggests strong buyer interest at this level. Historically, the $2,632 price point has served as a foundation for price rebounds, and it remains a crucial point for assessing whether the downtrend can be reversed.

On the opposite side, resistance has formed around the $3,149 level, where about 1.22 million ETH has been accumulated. Should the price attempt to rally toward this resistance, it could face selling pressure as many investors may look to take profits, preventing a sustained move upward.

Bearish Indicators Remain in Play

While accumulation at lower levels suggests confidence, some technical indicators still point to bearish momentum. The Relative Strength Index (RSI) is currently sitting at 33.30, which is nearing the oversold territory. This could indicate that ETH is undervalued and may experience a short-term rebound if buying pressure intensifies.

However, the MACD (Moving Average Convergence Divergence) remains in a negative configuration, with the histogram widening and the MACD and signal lines showing increasing separation. This suggests that the bearish momentum could continue in the near term, potentially leading to further declines if the market does not show signs of stabilization soon.

Should Ethereum break below the $2,500 level, the market will likely turn its focus to the $2,632 support zone. If buyers can step in and defend this level, ETH could find its footing and attempt a recovery. However, if this support fails, Ethereum could be in for a deeper correction, with the next logical support zone potentially being at lower levels.

The Role of Market Sentiment and Investor Behavior

Ethereum’s recent price action has been shaped by a mix of macroeconomic factors and investor behavior. While the market has been volatile, the fact that key accumulation zones are still holding strong suggests that many investors remain optimistic about Ethereum’s long-term prospects.

However, the market is currently in a delicate balance. The decline in price could continue if sellers gain more control, particularly if there is a breakdown of the $2,632 support. If the price breaks down below this zone, Ethereum could test further lower levels, and investors may face a tougher market environment in the short term.

Conversely, if accumulation continues at these lower levels, Ethereum could build a strong foundation for a rebound. A rally above $3,149 would trigger significant buy signals, driving the price higher.

Conclusion

Ethereum is at a crucial juncture. Despite recent volatility, the accumulation of ETH at key levels suggests that investor confidence remains intact, and the market may be positioning for a rebound. However, the technical indicators still point to potential downside risk, particularly if key support levels fail to hold. The coming days will be critical in determining whether ETH can stabilize at $2,632 and push higher, or if it will face further declines. Investors should remain cautious, as the market dynamics are still in flux.