Ether Plummets 51% From Peak, Whales Accumulate Amid Market Volatility
1min read Ether (ETH) has experienced a significant downturn, with its price falling over 51% from its peak above $4,100 in December 2024. To reverse this trend, Ether needs to reclaim the "macro range" above $2,200, according to popular crypto analyst Rekt Capital. This range, which extends from $2,196 to $3,900, is crucial for Ether to regain its upward momentum.
Despite positive regulatory developments, such as the dropping of a lawsuit against Ripple by the US Securities and Exchange Commission, Ether has struggled to gain significant traction. Analysts predict that both traditional and cryptocurrency markets will remain under pressure from global macroeconomic concerns until at least the beginning of April, when countries may find a resolution to retaliatory tariffs.
Ask Aime: What factors are driving Ether's price drop and when might it rebound?
Ether's open interest surged to a new all-time high on March 21, indicating that large traders are positioning for a rally above $2,400. This surge in open interest, coupled with the increasing number of addresses holding at least $100,000 worth of Ether, suggests that whales are actively accumulating the cryptocurrency. According to Glassnode data, the number of such addresses rose from just over 70,000 on March 10 to over 75,000 on March 22. This accumulation is in contrast to the broader market, where other investors have been selling off their holdings.
Nicolai Sondergaard, a research analyst, noted that while some traders blame whales for market downturns, these large investors are simply "playing the market in any direction." Sondergaard's analysis highlighted that ETH whales in the 10k to 100k range have been accumulating Ether, while other investors have been dumping their holdings. This dynamic underscores the strategic positioning of whales, who are likely anticipating a price rebound.
Despite the potential for short-term volatility, investors remain optimistic about Ether's prospects for the rest of 2025. According to the analyst's forecast, Ether's price could reach a cycle top of $6,000, while Bitcoin (BTC) could hit $180,000 during the same period. This optimism is fueled by the growing accumulation of Ether by whales, who are positioning themselves for a potential rally above $2,400. As the market awaits a resolution to global macroeconomic concerns, the accumulation by whales suggests that Ether may reclaim its "macro range" above $2,200, setting the stage for a potential price rebound. 
