Why Ethereum May Have Successfully Bottomed at the $2,800 Support Zone
Despite a dip to $2,870 following Fed minutes, on-chain data suggests Ethereum has found strong support at $2,800, signaling a potential bottom.Summary
Ethereum briefly fell to near $2,870 on November 19, its lowest since July, due to market uncertainty sparked by divided Federal Reserve minutes regarding a December rate cut. However, analysts suggest this drop established a potential bottom, supported by strong on-chain indicators.
The $2,800 level is identified as robust support, aligning with realized price clusters for both retail traders and whales, historically marking cycle bottoms. Furthermore, whales holding over 10,000 ETH are reportedly buying while retail sells, indicating healthy redistribution. Shrinking forced long liquidations and increasing short positions also raise the possibility of a short squeeze.
Network fundamentals remain strong, with ETH staking hitting a record high of over 33 million tokens locked, signaling long-term confidence. Institutional accumulation is also accelerating, evidenced by corporate purchases and BlackRock progressing on its iShares Staked Ethereum Trust ETF. Decreasing exchange reserves suggest a silent supply shock, reinforcing the bullish outlook, provided macroeconomic conditions do not derail the recovery.
(Source：BeInCrypto)