Ethereum (ETH) is one of the top assets that suffered a massive decline on Monday, currently trading at $4,177. A certain cohort of traders appears to have capitalized on this.<\/p>\n
In fact, data suggest that ETH whales aggressively bought the dip, which has pushed its realized price upwards.<\/p>\n
According to the latest findings by CryptoQuant, Ethereum accumulation addresses now show<\/a> an average realized price of around $2.9K, marking a crucial support zone.<\/p>\n Fueled by the ETH ETF rally, this level has climbed sharply from $1.7K to $2.9K, which demonstrates significant buying activity.<\/p>\n The total balance in these addresses has reached 27.6 million ETH. Analysts suggest that, in a worst-case scenario, the $2.9K level could act as a firm support, which could potentially cushion the leading crypto asset against deeper market declines. Although, this level remains close to 30% away from current prices, which in itself would be a considerable pullback.<\/p>\n Meanwhile, experts believe<\/a> that the recent shakeout could act as a catalyst to spur market momentum. At a time when whales are establishing a support zone, institutional treasuries have amplified the buying pressure.<\/p>\n It is owing to this increased demand from Digital Asset Treasuries (DATs) and a favorable regulatory boost from US stablecoin legislation that ETH surged back above $4,000 in September and has managed to retain this level despite this week\u2019s setback.<\/p>\n CoinMetrics reported<\/a> that DAT accumulation is now outpacing new ETH issuance since The Merge in September 2022.<\/p>\n This buying neutralizes inflationary dilution, even as validators receive fewer rewards from staking, with yields dropping near 3% as more ETH is locked in the network. DATs, unlike typical validators who redistribute rewards, are largely hoarding ETH, and creating a supply vacuum that could make the asset scarcer and potentially more valuable.<\/p>\n At the same time, Ethereum continues to dominate stablecoin activity, as evidenced by nearly 65% of total stablecoin supply settled on its network, a trend accelerated by the approval of the GENIUS Act. Daily stablecoin transfer volumes have surpassed $60 billion, which has directed more transaction fees to validators and bolstered network security.<\/p>\n Despite this, challenges remain. For instance, new \u201cstable-chains\u201d and faster competitors are threatening Ethereum\u2019s settlement advantage, while its relatively long block times risk constraining future growth if not addressed. Layer 2 networks offer a partial solution, by alleviating congestion and enabling faster, cheaper transactions, but developer focus on scaling will be critical.<\/p>\n Whether Ethereum can maintain its momentum depends on balancing deflationary pressures, validator incentives, and competition from emerging chains.<\/p>\n The post Ethereum\u2019s Worst Case Price Scenario for a Bear Market: ETH Analysis Reveals Key Targets<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Ethereum (ETH) is one of the top assets that suffered a massive decline on Monday, currently trading at $4,177. A certain cohort of traders appears to have capitalized on this. In fact, data suggest that ETH whales aggressively bought the dip, which has pushed its realized price upwards. Ethereum\u2019s $2.9K Fortress According to the latest […]<\/p>\n","protected":false},"author":0,"featured_media":99446,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-99445","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/99445"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=99445"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/99445\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/99446"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=99445"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=99445"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=99445"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Treasuries Draining ETH Supply<\/h2>\n