Ethereum (ETH) witnessed a dramatic 21% surge from $1,380 this week, as long-term holders show signs of capitulation – a historically reliable bottom indicator. The recovery coincides with Ethereum’s price falling below its realized value, potentially marking a prime accumulation zone for contrarian investors.
The sharp bounce came after US President Donald Trump announced a 90-day pause on global tariffs, excluding China. This policy shift triggered widespread relief across risk assets, with crypto markets leading the recovery.
Long-Term Holder Capitulation Signals Potential Bottom
According to Glassnode data, long-term ETH holders are capitulating en masse, selling positions at a loss after months of decline. Historically, such capitulation events have marked major market bottoms and preceded significant recoveries.
Technical Analysis Points to Key Resistance Levels
ETH is forming an “Adam & Eve” bullish reversal pattern on the 4-hour chart, with $1,820 emerging as the crucial resistance level. A breakthrough could target the 200-day moving average at $1,900, while failure to reclaim $1,800 might see prices consolidate between $1,300-$1,800.
FAQ: Ethereum Market Bottom Signals
Q: What indicates a market bottom for Ethereum?
A: Key indicators include long-term holder capitulation, price falling below realized value, and extreme fear sentiment readings.
Q: How reliable are capitulation signals?
A: Historically, long-term holder capitulation has preceded major market recoveries with 80% accuracy.
Q: What’s the potential upside target?
A: Technical analysis suggests an initial target of $1,900, with further resistance at $2,200 if the recovery gains momentum.