Is Ethereum Price Still Undervalued With Key Investor Level Looming At $2,800?

The Ethereum price is drawing renewed attention from investors as accumulation metrics signal rising interest despite a bearish technical setup. On-chain activity shows long-term holders are buying Ethereum at current levels even as the price remains under pressure.

With the $2,800 cost basis level identified as a key psychological and technical zone, market participants are closely watching whether Ethereum can reclaim this point. As of May 25, the Ethereum price is trading near $2,493, placing it roughly 11% below this threshold.

Ethereum Accumulation by Large Holders Continues Despite Market Volatility

Ethereum inflows into accumulating wallets have seen a steady increase since the start of 2024. These addresses, which typically receive but do not send out ETH, are seen as long-term holders.

According to recent analytics data, several large spikes in ETH inflows occurred even during periods of price decline. This indicates that some investors are purchasing more as the market corrects, following a long-term strategy.

From January 2016 to mid-2025, accumulation trends show a clear rise during key dips in the Ethereum price. Notably, the blue bars representing inflows into accumulation addresses grew larger during 2024 and 2025 despite volatility.

This sustained interest may be influenced by Ethereum network upgrades, growing use in decentralized finance (DeFi), and rising institutional activity.

Ethereum Price Faces Resistance Below $2,800 Key Investor Level

Technical data shows the Ethereum price has struggled to maintain upward momentum in recent weeks. ETH has remained in a tight range between $2,400 and $2,600. The current price, around $2,493, remains below the 20-day simple moving average of $2,524.

The upper Bollinger Band, a key resistance zone, stands at approximately $2,683, while $2,800 represents a critical investor cost basis level.

According to Glassnode, many Ethereum holders bought near $2,800, and may seek to sell if the price reaches breakeven. This could lead to temporary sell pressure, as underwater positions become neutral. However, if ETH breaks and holds above this level, traders may gain confidence in a more sustained rally.

Chart data from the past 30 days also shows that traders are cautious. Liquidation patterns indicate both long and short positions are being trapped, leading to a sideways price movement. Until Ethereum clears key levels with strong volume, a broader move is unlikely.

Market Sentiment Mixed as Liquidations and ETF Inflows Create Contrasting Signals

Recent liquidation data between April 20 and May 25 shows a pattern of alternating spikes. On May 8, short liquidations worth over $180 million pushed Ethereum to a local high, though long liquidations quickly followed. This suggests that while bullish momentum appears at times, follow-through has been limited.

Polymarket data further reflects this uncertainty. As of May 25, traders gave only a 7% probability that Ethereum will close the day higher. This marks a steep decline in short-term confidence from earlier in the month, when the odds were closer to 50%.

The lack of strong directional bias is also evident in spot price activity, with Ethereum consolidating around current levels.

On the other hand, inflows into Ethereum exchange-traded funds (ETFs) have risen. Over $238 million was added to Ethereum ETFs this week. BlackRock’s ETHA leads with $3.4 billion in assets, followed by Grayscale’s products.

This level of institutional engagement suggests longer-term interest in Ethereum, regardless of short-term volatility.

Ethereum Price Shows Signs of Recovery as Technical Indicators Strengthen

Trading has remained this month within its current range, but various chart patterns hint at potential increases. Ethereum pattern recently formed a bullish flag on the daily chart which is an indicator that the price may rise.

The flagpole went up at the start of this month, reaching its highest point when it was worth $2,736. In addition, it matches the spot where the price retraced by 50% of what it moved.

In addition, the golden cross occurred earlier this month when the 50-day Arnaud Legoux Moving Average crossed above the 200-day average. Many chart analysts see this move as a bullish sign for the coming weeks.

If Ethereum price rises above $2,736, analysts believe it may reach the 61.8% Fibonacci resistance level at $3,052. If this level is cleared, the mood could shift and drive up more buying. However, a price drop below the present support level of $2,366 could lead Ethereum to the sub-$2,300 ranges that were seen earlier in 2020.