Ethereum's $2,700 Battleground: Why Whale Accumulation Might Hold the Line
Ethereum (ETH) is currently navigating a precarious market landscape, struggling to maintain its position above the $2,700 mark after dipping below $2,800. Despite recent price weakness and limited upside momentum, underlying on-chain data presents a more resilient picture, hinting at significant long-term support from committed buyers.
Whale Cost Basis Emerges as Key Support
A recent report from CryptoQuant highlights that Ethereum's price decline to approximately $2,682 aligns closely with the "realized price of the ETH accumulation address." This crucial metric represents the average cost basis for long-term accumulators, providing a vital reference point for assessing the conviction of dedicated buyers. Historically, this realized price has served as a strong structural support during corrective market phases, indicating a shift from speculative selling to absorption by seasoned holders. In the current scenario, this zone is actively stabilizing the price, suggesting that despite broader market pressures, a significant cohort of large holders, or "whales," are confidently accumulating ETH at these levels, thereby reinforcing this as a defended price zone. This behavior contrasts sharply with the distribution patterns typically seen near market tops.
Ethereum Tests Long-Term Demand
Despite the underlying accumulation, Ethereum's immediate price action reflects a market under pressure, trading between $2,700 and $2,750 after failing to hold the psychological $3,000 level. Technical analysis reveals a pattern of lower highs and lower lows since the November peak, confirming a broader corrective trend. ETH is trading below its short- and medium-term moving averages (50-day and 100-day), which are acting as dynamic resistance. The 200-day moving average, though still trending higher above $3,500, suggests a loss of long-term momentum, indicating a market shift from an uptrend continuation to a consolidation-to-distribution phase. Crucially, the $2,700 area shows the presence of structurally committed buyers, with recent sell-offs characterized by declining volume, implying a lack of aggressive follow-through rather than widespread panic selling. As long as this accumulation cohort maintains its position, the probability of a sustained downside below $2,650-$2,700 remains limited, setting the stage for potential base-building.
