Ethereum dropped below the $2,800 level and is now struggling to hold the $2,700 area, extending the phase of price weakness amid weak market conditions. Recent price action is showing limited follow-through on rebounds. As retailers continue to shake up as risk appetite remains unbalanced. While local pressure has softened, on-chain data suggests a different picture from the bottom up.
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The realized price of the ETH stack address continues to trend upwards and is now approaching the current market price. This trend shows that the accumulation activity has not stopped despite the decline. In fact, the rising price received reflects coins being acquired on a consistently higher cost basis, indicating continued participation from long-term buyers rather than small amounts. Importantly, this price area has historically served as a strong support level for whales.
Remarkably, this price range has never been breached in previous tests. Each previous interaction with the acquired amount of accumulation coincided with a stabilization rather than an accelerated decline. Strengthening its relevance as a structural indicator. While this does not guarantee upside or prevent short-term volatility, it provides context for the current consolidation near $2,700.
Whale’s Cost Base Appears as Key Support
A recent report from CryptoQuant explains that Ethereum has declined to around $2,682, a level that closely matches the received value of the ETH collection address. This metric tracks the long-term accumulated cost base. It provides a reference point to assess where committed consumers stand.
Historically, the price gains of the rally addresses have served as strong structural support, especially during correction phases. When the market price meets this level, it usually indicates a transition from speculative selling to absorption by long-term holders. In the current scenario, this area is providing support, with price stability rather than accelerating declines despite broader market pressure.
CryptoQuant data also shows that whaling is always effective. Major holders continue to add ETH near these levels, raising confidence in this cost base and strengthening their role as a safe haven for the price. This behavior is contrary to the distribution patterns often seen near market tops, where observed values narrow or decline as long-term holders reduce exposure.
As long as the rally maintains its position and does not start spreading, the chances of a strong decline below this level remain limited. Price action anchors strong bullish momentum near $2,680, establishing a reasonable support zone even if short-term volatility continues.
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Ethereum Tests Long-Term Demand
Ethereum’s price action continues to show the market is under pressure. ETH is now trading around the $2,700–$2,750 area after failing to hold above the psychological level of $3,000. The chart shows a clear sequence of highs and lows from the highs in November, confirming that the broader trend remains positive rather than impulsive.
ETH is trading under short and medium term moving averages. The 50-day and 100-day moving averages act as strong resistance for recent rebounds. The 200-day moving average, which is still trending above $3,500, highlights the loss of long-term momentum and reinforces the view that the market has moved into a consolidation phase for distribution instead of continuing the early rise.
Importantly, the $2,700 area is closely aligned, driven by panic selling but with a lack of aggressive follow-through under pressure since December, suggesting the presence of structurally committed buyers. Volume decreased during the recent selloff. This shows that the decline is not driven by panic sales, but by a lack of aggressive follow-up from consumers.
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As long as ETH is holding above $2,650–$2,70 it is a deep retracement signal, and it is range-bound, with volatility pressure. A decisive break below this zone will open the door to a deeper retracement, while stability here will support a base-building issue rather than a trend continuation.
Featured image from ChatGPT, chart from TradingView.com
