Ethereum Long-Term Holders Show Signs Of Capitulation – Prime Accumulation Zone?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing Strict editorial policy that focuses on accuracy, relevance, and impartiality Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Este artículo también está disponible en español. Ethereum saw a dramatic turnaround this week, bouncing over 21% from its recent low of $1,380 in just hours. The sharp recovery came in response to an unexpected shift in macroeconomic policy: US President Donald Trump announced a 90-day pause on reciprocal tariffs for all countries—except China, which now faces a steep 125% tariff. The news sent a ripple through global markets, sparking a short-term rally in risk assets, including crypto. Related Reading Ethereum, which had been under heavy selling pressure for weeks, appears to have found temporary relief. According to Glassnode data, long-term Ethereum holders are starting to fold, offloading positions at a loss after months of decline. Historically, these moments of long-term holder capitulation have often marked bottoming phases and preceded meaningful rebounds. While short-term volatility remains elevated, some analysts view this setup as a potential opportunity zone, especially for contrarian investors looking to accumulate during peak fear. The market now watches to see if ETH can hold its gains or if broader uncertainty will drag prices back down. One thing is clear: the next few days could be pivotal for Ethereum’s trend heading into the second half of 2025. Ethereum Finds Relief Amid Chaos, But Market Remains On Edge Ethereum is now at a pivotal crossroads after enduring weeks of relentless selling pressure and uncertainty. The recent surge from sub-$1,400 levels has offered a glimmer of hope, as bulls begin to push back against the downtrend. This bounce follows aggressive volatility not just in crypto but across global equities, with price action rocked by continued geopolitical unrest and macroeconomic instability. US President Donald Trump’s unpredictable stance on tariffs remains a wildcard, keeping global markets on edge. Since peaking in late December, Ethereum has shed over 60% of its value, triggering growing concern that a full-scale bear market may be unfolding. Many investors have already exited positions, while others remain sidelined waiting for clarity. Still, some see opportunity. According to top analyst Ali Martinez, long-term Ethereum holders have now entered what’s commonly referred to as “capitulation” mode—a stage when even the most patient investors begin to fold under pressure. Martinez believes this could present a rare window for contrarian buyers. “For those watching risk-reward dynamics, this phase has historically marked prime accumulation zones,” he shared on X. Ethereum Long-Term Holder NUPL | Source: Ali Martinez on X While Ethereum’s path forward is still uncertain, current sentiment suggests that a critical test is underway—one that could determine whether this recovery has legs, or if further pain lies ahead. Related Reading Bulls Look To Confirm Recovery With Key Breakout Ethereum is showing signs of short-term strength as it forms an “Adam & Eve” bullish reversal pattern on the 4-hour chart. This classic technical formation, which starts with a sharp V-shaped low followed by a rounded bottom, often signals a potential breakout if price action holds and follows through. For Ethereum, reclaiming the $1,820 level is the first step to confirm this bullish structure. ETH forming a reversal in 4-hour chart | Source: ETHUSDT chart on TradingView If bulls can push ETH above this level with conviction, the next key challenge lies at the 4-hour 200 moving average (MA) and exponential moving average (EMA), both of which converge around the $1,900 mark. A decisive breakout through this zone would validate the recovery setup and could kickstart a more sustained move higher. Related Reading However, failure to reclaim the $1,800 level in the coming days may keep ETH stuck in a consolidation range. If rejected, price could remain rangebound between current levels and the lower support area near $1,300, where ETH recently bounced. For now, all eyes are on how price reacts to the resistance levels ahead, as bulls aim to regain control and shift the short-term momentum in their favor. Featured image from Dall-E, chart from TradingView
Ethereum Capitulation May Be Nearing End – Will A Fed Pivot Spark A Recovery?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing Strict editorial policy that focuses on accuracy, relevance, and impartiality Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Este artículo también está disponible en español. Ethereum has extended its downtrend, setting fresh lows around $1,400 — a level not seen since early 2023. The continuation of selling pressure has shaken market sentiment, with many investors fearing that the worst is still ahead. Ethereum, down over 65% from its 2024 highs, has failed to find a solid support level amid broad market weakness and growing macroeconomic uncertainty. Related Reading Despite the bearish outlook, some analysts believe a turning point may be near. According to top analyst Ted Pillows, Ethereum is now deep in a capitulation phase. He suggests that while there may still be one final 5%–10% dump left in the tank — particularly given the recent weakness in equities — the broader market structure may be setting the stage for a rebound. Pillows points to a potential Federal Reserve pivot as a key catalyst. With traditional markets under pressure and volatility rising, a shift in monetary policy could bring relief. Historically, changes in the Fed’s stance have provided a strong boost to risk assets. If support from policymakers emerges, Ethereum could stabilize and begin recovering from its recent lows — but not before weathering one last wave of fear and uncertainty. Ethereum Capitulation Deepens, But Fed Pivot Could Spark Rebound Ethereum is trading at $1,450 after suffering a sharp 20% decline in just hours, marking one of its steepest drops this year. The panic-driven selloff has shaken investor confidence, with fear now dominating the market. Ethereum, once expected to lead the altcoin rally in 2025, has failed to deliver on those expectations. Instead, it continues to disappoint as bearish momentum builds and selling pressure intensifies. Wider market conditions are adding to the pain. Trade war tensions, policy uncertainty from the US President Donald Trump administration, and mounting fears of a global recession are dragging both equities and crypto lower. With the S&P 500 already down sharply, the fear of a broader financial contagion is rising. Pillows’ analysis supports that Ethereum’s current plunge reflects a full-blown capitulation. However, he suggests that the market could be nearing a turning point. “Maybe there’s one last dump left, but after that, it’ll bounce,” Pillows said. The key reason? A likely pivot from the Federal Reserve. Ethereum capitulation in play | Source: Ted Pillows on X Pillows points to a potential Federal Reserve pivot as the catalyst. With the S&P 500 down over 10% in just two days and volatility rising, any further drop could force an emergency Fed response. Historically, rate cuts and renewed quantitative easing (QE) have been bullish for risk assets like Ethereum. If a pivot arrives, Ethereum could quickly bounce from current levels — but only after one final shakeout. Related Reading Ethereum Slides To $1,410 As Bears Maintain Control Ethereum has plunged to $1,410 after losing the crucial $1,800 support level, triggering a wave of aggressive selling and panic across the market. With no clear support zone immediately below current levels, bearish momentum appears firmly in control as ETH struggles to find footing. The breakdown below $1,800 marked a major technical failure, erasing confidence among traders and accelerating downside pressure. ETH loses critical demand levels | Source: ETHUSDT chart on TradingView For now, the path of least resistance remains to the downside. If sentiment doesn’t stabilize soon, Ethereum could continue sliding into lower demand zones, possibly retesting levels not seen since early 2022. The lack of a defined support structure beneath current prices leaves ETH exposed to more volatility in the near term. Related Reading However, hope remains for a recovery — but it hinges on a swift reclaim of the $1,800 level. A strong bounce back above this mark could signal that capitulation is complete and invite renewed buying interest from sidelined investors. Until then, Ethereum remains vulnerable, and any upside attempts will likely face resistance unless backed by broader market strength or a decisive macro shift. Bulls have a narrow window to flip the momentum before deeper losses set in. Featured image from Dall-E, chart from TradingView