Ethereum Begins Ironclad Defense at $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 Cointelegraph, a specialized virtual asset media outlet, on April 9 (local time), Ethereum traders predicted 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 the stable indicators in the derivatives market. It is positive that despite Ethereum's open interest remaining at a high level, the funding rate is neutral. The analysis suggests that with excessive leverage already cleared, traders are not responding to downward pressure with panic selling. One analyst stated, "As leverage liquidations have subsided, buying pressure around $1,800 is supporting the market."

Secondly, an increase in Ethereum outflow from exchanges is noted. According to Santiment data, the amount of Ethereum held on exchanges has recently decreased sharply, with investors moving their assets to cold wallets for long-term holding. This can reduce the circulating supply in the market, potentially causing a supply shock, and acts as a strong defense mechanism during price declines. The continuous increase in staked volume also serves as a major factor in alleviating selling pressure.

The final reason is the continuous buying by institutional investors. Fund inflows through Ethereum spot ETFs are actually strengthening during the downturn. 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 engaging in dip buying.

Technically, Ethereum is currently seeking a rebound, confirming support above key moving averages. The $1,800 level is a psychological last line of defense and a zone where a strong on-chain buy wall has formed. Based on these indicators, market participants 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.*