Investors’ sentiment and confidence in Ethereum, the second-largest digital asset appears to be improving in spite of recent troubling market developments that have hamper its market dynamics. Key metrics show a substantial accumulation of ETH, reflecting its position as a leading asset in the ongoing cycle.

Market Trends Changing As Ethereum CBD Decline?

Ethereum’s market dynamics are currently shifting even as the asset’s price struggles to recover crucial resistance levels. Leading on-chain data analytics and financial platform Glassnode points to a downward trend in Ethereum’s Cost Basis Distribution (CBD) metric amid fluctuating market performance.

A decrease in the cost basis distribution frequently indicates a broader change in the market’s dynamics or a rise in selling pressure. However, this is not the case for ETH right now.

According to the on-chain platform, the key metric shows that several cost bases have been moving lower, which suggests that investors have been accumulating ETH as prices have dropped. Key support for the accumulation zone is at the $2,632 level, while resistance is at the $3,149 level.

Data from Glassnode reveals that over 786,660 ETH were purchased by investors at the $2,632 support zone. Meanwhile, more than 1.2 million ETH were acquired by investors at the $3,149 resistance area. Such massive accumulation reflects investors’ strong sentiment and confidence in Ethereum’s future performance.

Glassnode noted that investors are averaging and buying ETH at lower prices rather than entirely selling their coins and exiting positions. Furthermore, a long-term conviction is reflected by the lowering cost basis, a similar trend has been observed in $MKR.

As Ethereum’s price faces heightened volatility, watching this trend is crucial as it could impact the altcoin’s trajectory in the upcoming weeks. During these uncertain periods, a large portion of ETH has been seen leaving cryptocurrency exchanges. 

Over the weekend, technical expert and Crypto Banter host Kyle Doops reported that there was a significant outflow of ETH, with netflow on derivative exchanges falling below 400,000 ETH. The number of net flows marks one of the largest in recent history.

Typically, such large withdrawals signal a potential bullish change up front and decrease selling pressure. With the altcoin trading below the $2,800 level, Kyle Doops underlined that market players may be preparing for an upward move as they wait for a change in sentiment.

A Rally To New All-Time High For ETH

After a prolonged period of weakness, ETH may be poised for a major rally to a new all-time high in the following weeks. Market technician Jonathan Carter foresees an upsurge to new levels due to a massive Ascending Triangle pattern on the weekly chart.

Ethereum is effectively holding its position above the multi-year trendline and the 100-day MA as it attempts to bounce from the ascending triangle support. Carter expects the upward momentum to push ETH’s price toward the next targets such as $3,200, $4,000, $4,850, $6,000, and $7,500.

Featured image from Unsplash, chart from Tradingview.com

Ethereum’s price trajectory has taken a sharp downturn, with technical analysis showing a possible crash to $2,000. Crypto analyst SwallowAcademy pointed out on the TradingView platform that some bearish signals are forming in smaller timeframes, especially as buyers have failed to maintain a key support zone at $2,700. Notably, the broader market downturn over the past 24 hours has only strengthened the case for further declines for Ethereum.

Ethereum Plunges Over 12% In 24 Hours As Market Suffers Steep Losses

The crypto market has taken a heavy hit, with Bitcoin falling below major support at $90,000 and shedding 6.9% over the past 24 hours. An already struggling Ethereum has fared even worse, with its price plunging 12.6% in the same timeframe. Particularly, Ethereum broke below support levels at $2,600, $2,500, and $2,400 in quick succession. 

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This steep decline has aligned with SwallowAcademy’s warning about Ethereum’s weakness on smaller timeframes, further lending weight to the possibility of a more profound drop to $2,000. SwallowAcademy had initially emphasized that Ethereum remained in a solid buying zone due to the presence of EMAs at the $2,700 support. However, with price action shifting, the analyst acknowledges that bearish pressure on lower timeframes could open the door for further declines.

Interestingly, this Ethereum price crash in the past 24 hours came as a surprise, as bulls managed to hold above a key support level of $2,700 despite the fiasco of Bybit’s $1.5 billion hack that took place throughout the weekend. 

Although the immediate fallout from the exchange’s hack appeared contained, the market now seems to be experiencing a delayed reaction, and fear is gradually setting in among investors. This growing uncertainty, combined with persistent outflows from crypto investment products, including Spot Bitcoin and Spot Ethereum funds, has added more downward pressure on Ethereum’s price.

As it stands, the current Ethereum daily candle is firmly in the hands of sellers, with no signs of easing pressure. This is a significant change from the previously strong buying sentiment.

Bearish Momentum Could Extend To $2,000

The weakening weekly candle has tipped the scales towards more declines than a bullish uptrend, though it is still early in the week to decide. cautions that it is still early in the week. Ethereum is already trading below the EMAs in the daily timeframe, so the crucial factor is whether it can hold above the EMAs in the weekly timeframe. 

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If the current selling momentum continues and the price breaks below $2,200, the next major downside target is $2,000 before any notable bounce can occur. 

At the time of writing, Ethereum is trading at $2,395 and is at the risk of more declines over the next 24 hours. Despite the sharp drop, the RSI has yet to reach oversold conditions, which means that sellers may still have room to push prices lower before exhaustion sets in.

Featured image from Adobe Stock, chart from Tradingview.com

Ethereum (ETH) has plummeted 11.4% in the past 24 hours, reflecting a broader market downturn that saw Bitcoin (BTC) drop by 8%, XRP by 13.6%, and Solana (SOL) by 12.9%. Despite the sea of red, several leading voices—including CryptoQuant CEO Ki Young Ju—are calling for a more optimistic perspective on ETH.

Time To Go Bullish On Ethereum

Sharing his “bullish thoughts on ETH” via X, Ki Young Ju argued there has been “no significant sell pressure” despite the recent Bybit hack, pointing out that both on-chain and market data remain neutral. “Exchange selling takes time, and OTC offloads barely affect the price,” he added.

He also emphasized Ethereum’s dominant share of the stablecoin market cap—currently around 56% and noted how potential regulatory shifts under the Trump administration, which is reportedly “easing crypto regs,” could spur further adoption of ETH-based stablecoins and smart contracts in 2025.

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Ju referenced additional catalysts, reminding followers that the ETH spot ETF “is already approved,” suggesting that a “Large Cap ETF altseason” might be on the horizon for Ethereum. He added, “BlackRock ETH spot ETF holdings increased 124% over the past three months.”

Lastly, Ju highlighted growing whale accumulation: addresses holding 10,000 to 100,000 ETH have increased their balances by 24% over the past year, with the current price “nearing the cost basis of accumulating addresses.”
However, Ju admitted he was “surprised” by what he sees as an overwhelmingly bearish mood on Crypto Twitter.

“Wow, CT [Crypto Twitter] sentiment on ETH is extremely bearish. Let me know if you have any data-driven analysis to support your bearish thesis. Most bears seem to cite the dropping price itself as their reason for selling. Very interesting,” Ju remarked.

On his alternative X account—under the handle @kate_young_ju—he reiterated that “whales are stacking ETH,” pointing to the current cost basis for these accumulating addresses at around $2,199, compared to the spot price hovering near $2,505.

Ju is not alone in challenging the doom-and-gloom market narrative. AdrianoFeria.eth (@AdrianoFeria), an member of the ETH community, asserted that “the market is in the shitter” but urged investors to focus on high-level institutional and political signals favoring Ethereum.

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He specifically cited reports of the US President and family purchasing “hundreds of millions of dollars worth of ETH,” the CEO of BlackRock’s endorsement of tokenization (and BlackRock’s own tokenized USD experiment on Ethereum), and Bybit’s need to buy large quantities of ETH to cover its hack—potentially fueling more demand.

Feria also mentioned that Ken Griffin, the CEO of Citadel believes Ethereum could replace Bitcoin. For this community member, the fact that “everyone on CT is still taking a shit on ETH” only reinforces a contrarian bullish stance.

Popular crypto analyst IncomeSharks (@IncomeSharks) weighed in by posting a chart showing another “red scary candle” but indicating a buy zone above $2,400.

Meanwhile, Chris Burniske, partner at Placeholder VC, offered historical perspective, reminding followers of 2021’s mid-cycle drawdowns: BTC fell 56%, ETH 61%, SOL 67%, and many other assets 70-80%. According to Burniske, “you can come up with all the reasons for why this cycle is different, but the mid-bull reset we’re going through isn’t unprecedented. Those calling for a full blown bear are misguided.”

At press time, ETH traded at $2.382.

Featured image created with DALL.E, chart from TradingView.com