Ethereum (ETH) has experienced a significant downturn over the past three months, losing over 51% of its value from a high of $4,100 on December 16, 2024, according to data from CoinMarketCap. Despite this decline, large investors have continued to accumulate ETH, signaling confidence in the cryptocurrency’s long-term potential.
Data from Glassnode reveals that the number of wallets holding at least $100,000 worth of Ether has increased, rising from approximately 70,000 on March 10 to over 75,000 by March 22. In contrast, back in December, when ETH was trading above $4,000, there were over 146,000 such wallets.
Nicolai Sondergaard, a research analyst at Nansen, noted on Cointelegraph’s Chainreaction show on March 21 that “the ETH whales in the 10K to 100K range have actually been accumulating ETH, whereas everyone else has been dumping.” Despite the broader market downturn, Ether’s open interest hit an all-time high on March 21, sparking speculation about a potential rally that could push ETH above $2,400.
For a recovery to materialize, analysts suggest that ETH must reclaim the $2,200 price range. Crypto analyst Rekt Capital emphasized in a March 19 post on X that if ETH can establish a strong response in this area, it may be poised to reclaim its broader macro range of $2,196 to $3,900.
However, broader macroeconomic factors continue to influence market conditions. Analysts predict that trade tensions and the ongoing issue of retaliatory tariffs will maintain pressure on financial markets at least until early April. Despite this, sentiment among ETH investors remains optimistic about the asset’s future.
Recent regulatory developments have further boosted investor sentiment. The U.S. Securities and Exchange Commission (SEC) recently dropped its lawsuit against Ripple, a move that is being interpreted as a positive sign for the broader cryptocurrency market. Looking to the future, investment firm VanEck has forecasted that Ethereum could reach a cycle top of $6,000 by 2025, with Bitcoin potentially soaring to $180,000.
While uncertainties remain, the accumulation trend among large investors and positive regulatory news suggest that Ethereum could see significant recovery as market conditions stabilize.
Related topic:
Global Investors Reassess China’s Stock Markets
Turkey Bans Short-Selling and Eases Buyback Rules Amid Market Turmoil
