Key Insights
- Ethereum (ETH) could rally to $4,000–$5,000 if demand rebounds, reversing the current pullback.
- Institutional investors and whales accumulated 450,000+ ETH in the past month, signaling strong confidence.
- The ETH/BTC ratio surged 38% from a five-year low, suggesting Ethereum may be undervalued relative to Bitcoin.
Ethereum Price Correction: Analyzing Support Levels
After peaking near $2,700** last week, ETH dropped 5% in 24 hours, slipping below **$2,500. Analysts debate whether this marks a prolonged downtrend or a temporary retracement.
Critical Support Zones
- $1,930–$2,100: Identified as a Fair Value Gap (FVG) by analyst Crypto Patel, this range aligns with a bullish order block at $1,810, potentially attracting investor re-entry.
- $1,800**: A psychological support level; sustained demand here could catalyze a rally toward **$4,000–$5,000 in the next bullish cycle.
👉 Discover how institutional accumulation impacts ETH’s long-term trajectory
Whale Activity and Institutional Demand
Institutional Accumulation
- Abraxas Capital purchased $650M worth of ETH recently, highlighting institutional interest.
- Spot Ethereum ETFs added $22M in ETH last Friday, per Farside Investors’ data.
On-Chain Data Insights
- Whales accumulated 450,000+ ETH over 30 days (Ali Martinez).
- Declining selling pressure and rising ETF inflows suggest a potential market bottom.
ETH/BTC Ratio: Undervaluation Signals
CryptoQuant reports:
- ETH/BTC rebounded 38% from a five-year low.
Key drivers:
- Rising ETH demand.
- Reduced sell-side pressure.
- ETF-driven accumulation.
This recovery hints at a possible altcoin season resurgence.
Ethereum Layer-2 Progress
Starknet became the first ZK-rollup Layer-2 to achieve Stage 1 decentralization, boosting Ethereum’s scalability narrative.
FAQ
Q: Is Ethereum’s pullback a buying opportunity?
A: If ETH holds $1,800–$2,100, it could be a strategic entry point for long-term gains.
Q: Why is the ETH/BTC ratio important?
A: It measures Ethereum’s performance against Bitcoin; a rising ratio suggests ETH is gaining strength.
Q: How are institutions influencing ETH’s price?
A: Large-scale accumulation (e.g., ETFs, whales) reduces circulating supply, potentially driving prices higher.
👉 Explore Ethereum’s Layer-2 innovations
Note: Market conditions evolve rapidly. Conduct independent research before investing.
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