Ethereum’s Worst Case Price Scenario for a Bear Market: ETH Analysis Reveals Key Targets

Ethereum (ETH) is one of the top assets that suffered a massive decline on Monday, currently trading at $4,177. A certain cohort of traders appears to have capitalized on ￰0￱ fact, data suggest that ETH whales aggressively bought the dip, which has pushed its realized price upwards. Ethereum’s $2.9K Fortress According to the latest findings by CryptoQuant, Ethereum accumulation addresses now show an average realized price of around $2.9K, marking a crucial support ￰1￱ by the ETH ETF rally, this level has climbed sharply from $1.7K to $2.9K, which demonstrates significant buying ￰2￱ total balance in these addresses has reached 27.6 million ￰3￱ suggest that, in a worst-case scenario, the $2.9K level could act as a firm support, which could potentially cushion the leading crypto asset against deeper market declines.

Although, this level remains close to 30% away from current prices, which in itself would be a considerable pullback. Meanwhile, experts believe that the recent shakeout could act as a catalyst to spur market ￰4￱ a time when whales are establishing a support zone, institutional treasuries have amplified the buying ￰5￱ Draining ETH Supply It is owing to this increased demand from Digital Asset Treasuries (DATs) and a favorable regulatory boost from US stablecoin legislation that ETH surged back above $4,000 in September and has managed to retain this level despite this week’s ￰6￱ reported that DAT accumulation is now outpacing new ETH issuance since The Merge in September ￰7￱ buying neutralizes inflationary dilution, even as validators receive fewer rewards from staking, with yields dropping near 3% as more ETH is locked in the network.

DATs, unlike typical validators who redistribute rewards, are largely hoarding ETH, and creating a supply vacuum that could make the asset scarcer and potentially more ￰8￱ the same time, Ethereum continues to dominate stablecoin activity, as evidenced by nearly 65% of total stablecoin supply settled on its network, a trend accelerated by the approval of the GENIUS ￰9￱ stablecoin transfer volumes have surpassed $60 billion, which has directed more transaction fees to validators and bolstered network ￰10￱ this, challenges ￰11￱ instance, new “stable-chains” and faster competitors are threatening Ethereum’s settlement advantage, while its relatively long block times risk constraining future growth if not ￰12￱ 2 networks offer a partial solution, by alleviating congestion and enabling faster, cheaper transactions, but developer focus on scaling will be ￰13￱ Ethereum can maintain its momentum depends on balancing deflationary pressures, validator incentives, and competition from emerging chains.