Ethereum briefly fell to $2,872, marking a key support zone on the chain that analyst MAC_D said resembles a “classic bottom.”
Ethereum (ETH) briefly hit a critical low of $2,870 on Wednesday, testing a vital support level on the chain that has historically signaled market lows.
According to an on-chain assessment by analyst MAC_D, this price represents a “realized price” bucket for both retail and large-scale investors, suggesting a potential basis for a rally is forming even as smaller portfolios sell off.
The realized price group of $2,800 marks the “classic bottom” zone
In its latest report on CryptoQuant, MAC_D noted that historically, these realized price zones have often marked important bottom areas, as long-term investors step in while short-term traders exit.
The market technician noted that the latest drop below $2,900, driven by risk-off sentiment ahead of Nvidia’s earnings report, was followed by a rapid rebound after the chipmaker beat expectations, boosting both US stocks and cryptocurrencies.
At the same time, there is a clear divide in behavior: smaller wallets are sold until weakened, while whale wallets with more than 10,000 ETH have continued to accumulate as prices drop. According to the expert, this change in supply from impatient traders to larger and longer-term players is also usually observed during the last stage of fund formation.
Furthermore, the liquidation data also points to a decline in forced selling pressure. MAC_D highlighted that each new local low is now accompanied by a much smaller wave of long liquidations, suggesting that overleveraged bulls may have already been pushed out.
Meanwhile, short positions have increased, meaning even a modest bounce could put pressure on bears in what remains a relatively tight order book environment.
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Key Liquidity and High Leverage Zones
In the market, Ethereum’s performance has been challenging. While its current value of around $3,020 per CoinGecko represents a slight 1% drop over the past 24 hours, it is down almost 15% over the past week and an even more serious 22% over the past month.
At the same time, the asset’s Estimated Leverage Ratio (ELR) on Binance recently hit a record high of 0.5617 as the price oscillated in a narrow band around $3,000. And with longs and shorts piling in while spot remains relatively stable, Arab Chain experts warned that the market is “building internal pressure” and is increasingly prone to a violent breakout in either direction.
Observers are also eyeing nearby liquidity pockets as potential magnets for the next move. Crypto analyst Patel noted on Nov. 19 that Ethereum had confirmed a “structure breakout” 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 measure to fill this gap would require a 14 to 15% increase from current levels.
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