Ethereum briefly dropped to $2,872, tagging a key on-chain support zone that analyst MAC_D says resembles a “classic bottom.”
Ethereum (ETH) briefly touched a critical low of $2,870 on Wednesday, testing a vital on-chain support level that has historically signaled market bottoms.
According to an on-chain assessment by analyst MAC_D, this price point represents a cluster of the ‘realized price’ for both retail and large-scale investors, suggesting a potential foundation for a rebound is forming even as smaller wallets sell off.
$2.8K Realized Price Cluster Marks “Classic Bottom” Zone
In their latest report on CryptoQuant, MAC_D noted that, historically, such realized price zones have often marked major bottom areas, as long-term investors step in while short-term traders exit.
The market technician pointed out that the latest drop below $2,900, driven by risk-off sentiment before Nvidia’s earnings report, was followed by a swift rebound after the chipmaker beat expectations, lifting both U.S. equities and crypto.
At the same time, there is a clear split in behavior, with smaller wallets selling into weakness, while whale wallets holding over 10,000 ETH have kept accumulating as prices go lower. According to the expert, that shift in supply from impatient traders to larger, long-term players is also typically seen during late-stage bottom formation.
In addition, liquidation data also points to fading forced-selling pressure. MAC_D highlighted that each fresh local low now comes with a much smaller wave of long liquidations, suggesting over-leveraged bulls may have already been flushed out.
Meanwhile, short positioning has grown, meaning even a modest bounce could squeeze bears in what remains a relatively thin order-book environment.
You may also like:
High Leverage and Key Liquidity Zones
At the market, Ethereum’s performance has been challenging. While its current value of around $3,020 per CoinGecko represents a slight 1% dip in the last 24 hours, it is down almost 15% over the past week and an even more dire 22% across the last month.
At the same time, the asset’s estimated leverage ratio (ELR) on Binance recently hit a record 0.5617 as the price drifted in a tight band around $3,000. And with both long and short traders piling in while spot remains relatively flat, experts at Arab Chain warned that the market is “building internal pressure” and is increasingly prone to a violent break in either direction.
Observers are also watching nearby liquidity pockets as potential magnets for the next move. Analyst Crypto Patel noted on November 19 that Ethereum had confirmed a “Break of Structure” at $2,940, but identified a zone of price inefficiency, known as a “Fair Value Gap,” between $3,270 and $3,360. They estimated that a move to fill this gap would require a 14 to 15% increase from current levels.
SECRET PARTNERSHIP BONUS for CryptoPotato readers: Use this link to register and unlock $1,500 in exclusive BingX Exchange rewards (limited time offer).
