Long-term Ethereum accumulation could unwind if ETH price falls below $1.9K — Analyst

Ethereum’s native token, Ether (ETH), continues to consolidate under $2,000, which some traders view as a psychological level. Ether price slipped below this range on March 10, and the altcoin continues to trade at its lowest value since October 2023.

Ether price has also lost market value with respect to other major altcoins, with XRP price reaching its highest level against ETH in five years on March 15.

The real question among investors is whether ETH is capable of recapturing a portion of its recent losses or whether traders will capitulate if the price falls below $1,900.

Ethereum traders could jump ship if price falls below $1,900

According to data from IntoTheBlock, a data analytics platform, Ethereum holders accumulated 3.56 million ETH between $1,900 and $1,843, with an average price of $1,871. Therefore, the current accumulation value currently stands at $6.65 billion. This indicates that ETH’s price has a strong support level between $1,900 and $1,843, which can potentially act as the bullish reversal zone.

However, if Ether drops below $1,843, data points to the possibility of rising capitulation fears. Capitulation is a market sentiment where investors tend to panic, selling their positions at a loss during a sharp market correction. If ETH consolidates for a prolonged period under $1,843, the likelihood of a deeper correction increases exponentially.

Below $1,843, the size and volume of ETH accumulation are significantly lower, which further illustrates the importance of the $1,900 to $1,843 support range.

Similarly, the percentage of Ethereum addresses under profit dropped to its lowest level since the start of the decade. It is the lowest value since December 2022 at just under 46%.

A low percentage of profitable addresses has historically indicated a price bottom for Ethereum. Given the high ETH accumulation and fewer profitable addresses, these factors may act as bullish signals. As a result, the likelihood of Ethereum consolidating below $1,843 in the long term is decreasing.

Hitesh Malviya, the founder of DYOR crypto, said it is not a “great time to bearish on ETH.” In an X post, Malviya highlighted the recent rise of real-world assets (RWAs) in the industry, with a 50.9% increase in growth over the past 30 days and an 850% yearly increase, with Ethereum and ZKsync capturing…