Ether Drops 52% as Whales Accumulate Near $1,900 Support

Ether, the world's second-largest cryptocurrency, is currently facing a significant challenge as it approaches a critical support level. The cryptocurrency has experienced a substantial decline, with its price falling over 52% since peaking above $4,100 on December 16, 2024. As of now, Ether is trading at approximately $1,939, and analysts are closely monitoring the $1,900 level, which is considered a robust demand zone.

According to on-chain metrics, the support zone for Ether lies between $1,848 and $1,905, where roughly 4.3 million ETH have been purchased previously. This region has historically provided strong support for the cryptocurrency. However, if Ether dips below this level, the risk of capitulation increases. Capitulation refers to a situation where investors sell their positions in a panic, leading to a significant price decline. This could signal an imminent market bottom before the start of the next uptrend.

Despite the risks, analysts believe that growing whale accumulation could prevent Ether from falling much lower. Large investors have been collectively adding to their holdings, which could provide support and prevent further declines. Nicolai Sondergaard, a research analyst, noted that whales have been accumulating Ether, and substantial amounts of ETH are held by large players. This behavior was also seen in recent options data, where larger players and institutions were positioning themselves for moves in either direction, reflecting the market's uncertainty about Ether's future direction.

Whale addresses with at least 1,000 ETH or $1.92 million have started staging a recovery since the beginning of 2025. The number of these addresses rose over 4% year-to-date, from 4,652 addresses on January 1 to over 4,843 addresses on March 14. This accumulation by whales suggests that there is significant interest in Ether at current price levels, which could provide support and prevent further declines.

Up-to-date options data shows institutional participants are preparing for volatility in both directions, as well as uncertainty regarding the direction of ETH’s price. The analysts are still divided on whether Ether will see a steep rebound or additional corrections. Ether’s short-term trend is unclear while major indicators see the $1,900 support level as being potentially pivotal to decide its future direction.