• Ethereum held key support near $2,800 as markets rebounded after Nvidia’s earnings.
• Whales accumulated ETH while retail sold, signaling strong long-term holder demand.
• BlackRock’s new Staked ETH ETF plan boosted expectations of rising institutional inflows.

Ethereum maintained a stable position around a major support zone in the week following fresh market uncertainties that rocked both shares and cryptocurrencies. The decline was initiated when speculation about the earnings of Nvidia dragged the U.S. stocks down. 

Ethereum went into the slump and dropped to $2,870, falling below an earlier low and losing momentum. Nvidia reported reports which were even more better than expected later and markets were quickly recovered, Ethereum has climbed back to beyond $3,000.

Ethereum’s $2,800 Zone Shows Strong On-Chain Support

Analytical firm CryptoQuant suggested that the area of $2,800 was a significant on-chain support zone. The region is equivalent to the realized price of concentration among retail traders and big holders. 

Source: CryptoQuant

These groupings have in many cases been cycle lows in the previous periods of the market. The congruence indicates that the range can once again provide a solid ground to a possible short-term recovery with no need to look at speculative interpretations.

On-chain data indicated that there was a marked difference among investors in the behavior. Retail wallets were sold throughout the decline. Massive holders exceeding 10,000 ETH gather irrespective of the downward trend. 

This flow reflected a shift in supply toward the long-term holders by the short-term participants. This kind of transition is typically witnessed in previous market cycles when redistribution is underway, solely on quantifiable seat belt behavior.

Source: CryptoQuant

The long liquidation volume also reduced as Ethereum entered new local lows. This pattern was an indicator that the forced-selling was decreased during recessions. Simultaneously, the short positions were on the rise. 

The accumulation of shorts had provided an environment in which a slight increase would generate a chain of liquidations. This kind of response can enhance steep soaring actions without the use of external assumptions in the low liquidity environment.

Also Read: Hedera Hashgraph (HBAR) Eyes $0.19 Bounce as Key Support Holds

Fundstrat CIO Tom Lee said that Ethereum could be at the bottom because it tested the range of $2,800. He cited the fact that Ethereum rose to over $3,000 very fast as evidence of that opinion. 

His emphasis was also on the increasing role of networks in developing stablecoins and in the tokenization of real-world assets. These uses including Ethereum have been picked because of the network uptime by Ethereum and its neutrality by Larry Fink and BlackRock.

Institutional Interest Signals Possible Ethereum Upside

According to Lee, the volatility of ETH is attributable to the previous stage of greater adoption of crypto assets. He admitted that the asset has been down on a downward trend. Nevertheless, he anticipates that ETH will trade in the first quarter of 2026 to $7,000. His statements were centered on visible changes and not speculation.

Another move in the direction of Ethereum was made by BlackRock this week. An additional filing was made under the ’33 Act in respect of a Staked Ethereum ETF. 

This product would be used together with an iShares Ethereum Trust that this firm already has. The new fund will aim at staking and will enable investors to realize greater real returns of staked ETH in the framework of a regulated ETF.

The staking-based product can attract a lot of institutional attention due to the significant number of firms interested in yield-based solutions. Throughout the time of past market booms, a dollar of staked ETH could add a large portion of value to the market capitalization of Ethereum. 

The present action of the data-monitored accumulators and institutional plans is an indicator of greater activity in the market. These developments allow ETH to move to new highs over time, according to analysts, without repeating the previous trends.

Also Read: Ethereum’s Future at Crossroads as Vitalik Warns of 2028 Quantum Breakthrough