Over 1.8 Million Addresses Bought 52 Million ETH at $2,350—Is Ethereum Set for More Losses

Ethereum, the second-largest cryptocurrency by market cap, has seen significant downward pressure recently, reflecting the overall sentiment in the crypto market. With Bitcoin and other major altcoins also suffering, Ethereum’s price has dipped below $2,400, and traders are now looking to a key support level around $2,350 for clues on where the coin might head next.

The current downturn in Ethereum has some investors worried, while others are taking advantage of the lower prices, accumulating ETH at these levels. According to Into The Block data, 1.89 million addresses have collectively purchased 52 million ETH between $2,311 and $2,383. The average price of these purchases, $2,350, now serves as a crucial support level for Ethereum. Whether this level holds or breaks will likely determine Ethereum’s trajectory in the near term.

Ethereum Under Pressure: A Closer Look at Price Movements

At the time of writing, Ethereum has experienced a 10% drop over the past week, erasing much of its gains from September. Coin Market Cap data shows that the total cryptocurrency market capitalization has shrunk to $2.17 trillion, with many top-tier assets, including Ethereum, contributing to the slump.

The decline in Ethereum’s price has pushed it below the $2,400 mark, a key psychological level that previously acted as support but now appears to have turned into resistance. As traders anxiously watch the charts, many are wondering if the $2,350 level will serve as a strong enough floor to stop Ethereum’s descent.

Interestingly, despite the downturn, some traders have begun accumulating ETH around the current prices. Data from Into The Block reveals that a significant number of Ethereum addresses have purchased ETH at an average price of $2,350, indicating that there’s strong buyer interest at this level. This suggests that traders view $2,350 as a potential support zone, but if bears continue to dominate the market, sellers will need to put in considerable effort to push prices below this key level.

Will Ethereum Hold $2,350, or Are Further Losses Ahead?

Ethereum’s current price action is being closely watched, especially around the $2,350 zone. This level falls within the 61.8% and 78.6% Fibonacci retracement levels, which are traditionally seen as strong areas of support in technical analysis. The fact that nearly 52 million ETH was purchased at these levels suggests that a lot of traders are betting on a price rebound.

However, the question remains—will the $2,350 support hold, or will Ethereum fall further?

On the technical front, crypto assets like Ethereum often find support near Fibonacci retracement zones, as they represent areas where prices tend to consolidate before making the next significant move. A bounce off this support could lead to a relief rally, with Ethereum potentially climbing above $2,800 and even targeting $3,500 if bulls regain control.

On the other hand, a sharp break down below $2,350 could open the floodgates for more selling pressure. A further decline could see Ethereum testing the $2,100 level, which was the low point in August, and should this support fail, the coin may plummet toward $1,800—a key level from earlier this year.

Market Maker Activity Adds to the Bearish Outlook

Adding to the uncertainty surrounding Ethereum’s price is the activity of large market makers. On chain data reveals that Winter mute, a leading crypto market maker, moved 14,221 ETH to Binance earlier today. This could be a sign that Winter mute is preparing to sell, which would likely put additional downward pressure on Ethereum’s price.

This isn’t the first time Winter mute and other market makers have acted in a way that could influence Ethereum’s price. In August, Winter mute, along with other major players like Jump Capital, sold over 130,000 ETH, which contributed to Ethereum’s drop at the time. If these large-scale sell-offs continue, Ethereum’s chances of holding above $2,350 could diminish.

What Lies Ahead for Ethereum?

Ethereum’s current predicament highlights the volatility that continues to characterize the cryptocurrency market. While the $2,350 support level is holding for now, traders should brace themselves for possible volatility. If buyers manage to defend this level, we could see a significant rebound, offering a short-term rally that pushes Ethereum toward the $2,800 mark.

However, if the bearish momentum persists, with further sell-offs from market makers and institutions, Ethereum could easily slip below $2,100, which could a new wave of panic selling. In such a scenario, Ethereum may even revisit the $1,800 level—a price point that last held in early August.

The next few days will be critical for Ethereum as traders keep a close eye on whether this support holds or crumbles. With over 1.89 million addresses now invested in ETH at around $2,350, this level has become a battleground between bulls and bears, and the outcome will likely shape the market’s direction for the foreseeable future.

Conclusion: Is $2,350 the Key to Ethereum’s Future?

Ethereum’s future direction largely hinges on its ability to maintain support at $2,350, a level where significant buyer activity has occurred. Whether the cryptocurrency rallies from here or succumbs to further losses will depend on how the market reacts to this critical zone. For now, traders should remain vigilant, especially as large market makers like Winter mute make moves that could impact the broader market.