Ethereum Begins Ironclad Defense of $1,800...Traders Confident "It Won't Fall"

▲ Ethereum (ETH)/AI Generated Image

Even as Ethereum (ETH) prices undergo a correction, derivatives indicators and on-chain data suggest that the $1,800 level will act as a strong support line.

According to a report by virtual asset specialized media Cointelegraph on April 9 (local time), Ethereum traders anticipated that the current price decline would not fall below $1,800, citing three key reasons. This analysis is based on Ethereum's robust fundamental strength despite increased market volatility.

The first reason is stable indicators in the derivatives market. The fact that Ethereum's open interest remains high while the funding rate stays neutral is positive. The analysis suggests that with excessive leverage already cleared, traders are not responding to downward pressure with panic selling. One analyst diagnosed, "With the deleveraging settling, buying pressure around $1,800 is supporting the market."

The second reason is the increasing outflow of Ethereum from exchanges. According to Santiment data, Ethereum holdings on exchanges have sharply decreased recently, with investors moving assets to cold wallets for long-term holding. This could reduce the circulating supply in the market, potentially causing a supply shock, and act as a strong defense mechanism during price drops. The continuous increase in staked volume also serves as a major factor in alleviating selling pressure.

The final reason is the continuous buying interest from institutional investors. Fund inflows through Ethereum spot ETFs appear to be strengthening even in a downtrend. In particular, large buy orders are concentrated in the price range between $1,800 and $2,000, firmly supporting the price floor. This indicates that institutions perceive Ethereum as a long-term store of value and are actively engaged in buying at lower prices.

According to technical analysis, Ethereum is currently seeking a rebound, confirming support above key moving averages. The $1,800 line is a psychological last resort and a zone where a strong on-chain buy wall has formed. Market participants, based on these indicators, believe that the current correction is likely to be a short-term breather and are closely monitoring future price movements.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*