#BitcoinBounceBack Ether faces a possible drop below $1,900 amid rising investor demand.🛑🛑🛑🛑🛑

According to Cointelegraph, Ether (ETH) has experienced a significant price drop, falling more than 52% during a three-month downtrend after reaching a peak above $4,100 on December 16, 2024, according to TradingView data. The cryptocurrency now faces the possibility of another correction below the $1,900 mark, which could trigger substantial buying pressure. Juan Pellicer, senior research analyst at IntoTheBlock, highlights that on-chain metrics indicate a strong demand zone for ETH just below $1,900. Historically, around 4.3 million ETH were purchased within the range of $1,848–$1,905, suggesting considerable support at this level. However, if Ether falls below this threshold, the risk of capitulation increases, as demand beyond this zone appears to be much weaker.

In financial markets, capitulation refers to investors selling their positions in panic, leading to a significant price drop and signaling an imminent market bottom before the start of the next bullish trend. Despite the potential for a temporary correction below $1,900, it is unlikely that Ether will experience further downsides due to the growing accumulation of whales, according to Nicolai Sondergaard, research analyst at Nansen. Sondergaard notes that if ETH fails to maintain the $1,900 level, further declines could occur. However, whales have been accumulating, and WLFI holds substantial amounts of ETH, indicating that price action has not been favorable.