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ETH $2.8K as a Key On-Chain Support Level, Signals Potential Rebound
uncertainty surrounding Nvidia’s earnings pushed the U.S. equity market lower, and the crypto market followed with a similar decline. Ethereum fell to $2.87k, breaking below its previous low again and weakening investor sentiment. However, Nvidia’s earnings came in above expectations, allowing both U.S. equities and crypto assets to recover swiftly. The $2.8k area is likely to act as an important on-chain support level for Ethereum. This zone aligns with the realized price clusters of both retail investors and whales. Historically, realized price levels have often marked cycle bottoms, suggesting that this range could once again provide a foundation for a short-term rebound. The ‘Balance by Holder Value’ metric also shows a notable divergence: retail wallets have been selling, while whales holding over 10k ETH continue to accumulate even as the price trends lower. This indicates a clear rotation of supply from short-term traders to larger, long-term-oriented holders — a classic sign of ongoing redistribution. Another important factor is the sharp decline in long liquidation volume when ETH breaks to new local lows. This implies that forced-liquidation selling pressure is steadily weakening. Meanwhile, short positions have expanded, creating conditions where even a modest price bounce could trigger a sequence of short liquidations and potentially lead to a short squeeze in a low-liquidity order-book environment.