380,000 ETH Defends Key Support as Ethereum Dips: Details

According to on-chain analytics platform Glassnode, Ethereum, the second-largest cryptocurrency by market capitalization, appears to be range-bound between $1,548 and $1,599, where nearly 793,900 and 732,400 ETH are being held, respectively, indicating market indecision as bulls and bears battle for control.

Though this remains significant, what is catching further attention is a support zone forming around $1,461. According to Glassnode, support may be building at this key level, where a whopping 380,000 ETH have been accumulated.

This might act as a defense for ETH's price, potentially cushioning further downside in the near term, Glassnode noted.

This accumulation may serve as a buffer for ETH's price, providing a safety net if the price drops further. While the overall market remains cautious, such large holdings around critical price levels frequently suggest that investors might be positioning themselves for a potential rebound or, at the very least, expect near-term stability.

What's next for ETH price?

This week, the Ethereum price has continued its zigzag trend. At press time, ETH was down 2.3% in the last 24 hours to $1,551, extending a drop that had seen it lose 13% in the previous week, despite most majors falling 2% on average during the same period.

A break in either direction from $1,548 and $1,599 would cause ETH to escape its current range trading. This would cause ETH to target $2,022 and $2,809, which correspond to the daily SMA 50 and 200, respectively.

In the event of a drop, if Ethereum maintains its foothold above the $1,461 level, it could provide a foundation for the next leg upward — assuming market sentiment improves. Unless a major shift occurs, ETH remains range-bound, with traders closely watching both resistance and support levels.

According to Ali, a crypto analyst, Ethereum Entity-Adjusted Dormancy Flow has dropped below one million. This historically indicates a macro bottom zone, meaning ETH might be undervalued and long-term holders less inclined to sell. It might suggest that low sentiment or capitulation may have occurred, or ongoing accumulation.