The volatility surrounding Ethereum has raised concerns among investors who fear that the lack of fresh capital could delay a sustained recovery. Recent on-chain data reveals that those who entered positions at considerably higher price points are now becoming increasingly cautious about injecting additional funds.
An analyst, widely recognized by the pseudonym “Murphy,” has examined trader activity in recent months. According to his findings, a substantial number of investors who made their purchases during January and February 2025 acquired Ethereum at prices ranging between $3,200 and $3,500. One notable group accumulated roughly 1.66 million ETH at an average cost near $3,475. Despite the market pullback—with prices declining to approximately $1,900—these traders have refrained from further buying, and their collective holdings now amount to about 1.94 million ETH, effectively reducing their average cost basis to around $3,150.
Another segment of investors, who entered the market during mid-February with entry points falling between $2,600 and $2,800, have taken a different approach. As prices receded below the $2,300 mark, many in this group opted to liquidate their positions. Their actions resulted in the preservation of key price levels, with a significant volume remaining at approximately $2,800 and another sizable cluster stabilizing near $2,630.
Market Sentiment and Key Price Barriers
The data suggests that, as Ethereum continues its descent and hovers below the $2,000 threshold, there is a marked decline in buying interest at these lower price levels. The withdrawal of fresh capital is particularly concerning given the reliance on renewed investor confidence for any robust market rebound.
Murphy points out that investors who bought at higher price points appear to have exhausted their capacity to lower their cost basis further after multiple attempts. The level of $1,850 has emerged as a crucial benchmark. Many longer-term holders—who entered the market roughly two years ago—are expected to re-engage at this price in an effort to mitigate losses. Should Ethereum fail to maintain prices above this support level, there is a possibility for further declines toward levels such as $1,600 or even $1,250, where older accumulated positions might provide the last cushion against deeper falls.
Summary of Key Price Levels
| Price Level | Significance |
| $3,200–$3,500 | Initial entry range for many investors during January–February 2025 |
| $3,150 | Current average cost basis of early buyers after price drop |
| $2,800 | Key support level with significant ETH accumulation |
| $1,850 | Crucial threshold that long-term holders may target to reduce overall losses |
For Ethereum to embark on a meaningful recovery, restoring investor confidence in its long-term value is essential. Without a revitalized belief in the asset, the existing heavy accumulations at the levels of approximately $2,630, $2,800, and $3,150 could continue to serve as significant resistance, stymieing any upward momentum.
The unfolding dynamics in Ethereum’s market not only illustrate the delicate balance between investor sentiment and technical support but also underscore the challenges that lie ahead as the crypto landscape continues to evolve.
Jason Walker, aka “Crypto Maverick,” is the energetic new member of cryptovista360.com. With a background in digital finance and a passion for blockchain, he makes complex crypto topics engaging and accessible. His mix of analysis and humor simplifies volatile market trends. Outside work, Jason explores tech, enjoys spontaneous road trips, and American cuisine. Crypto Maverick is ready to guide you through the ever-changing crypto landscape with insight and a smile.