Ethereum’s price saw a sharp dip to $1,415 on Monday during a widespread market downturn but has since rebounded to $1,505. Despite this recovery, the cryptocurrency remains down 15% over the past 24 hours. The drop followed negative market reactions to intensified global tariffs imposed by the Trump administration. Analysts have identified a critical support level for Ethereum at $1,290, based on the average cost basis of large holders, known as whales.
**Ethereum’s Support Levels**
According to CryptoQuant, Ethereum’s next major support is at $1,290, aligning with the realized price of investors holding over 100,000 ETH. The average cost basis for Ethereum holders is approximately $2,200, placing many at a loss. Despite current challenges, the altcoin has shown resilience in the past, as demonstrated during the Terra-Luna crisis in June 2022, when it dropped to $870 before quickly recovering.
However, whale activity suggests potential hurdles. Spot On Chain reported that an Ethereum ICO whale deposited 7,000 ETH, worth around $10.21 million, to the Kraken exchange, fueling speculation of a potential sale. The whale still holds 23,070 ETH, valued at about $34.5 million, and has a history of selling during price declines.
**Ethereum’s Valuation**
On a positive note, IntoTheBlock reported that Ethereum’s Market Value to Realized Value (MVRV) ratio has decreased to 0.87, the lowest since December 2022, indicating that the asset is currently undervalued. This suggests room for price recovery, as investors may accumulate Ether at discounted rates.
