Chinese Analyst Evaluates Ethereum's Situation, Says "Whales Have Exhausted Their Purchasing Power"! Here's What They Can Expect

According to Chinese on-chain data analyst Murphy, the purchasing power of Ethereum (ETH)** investors who opened positions at high price levels was largely depleted, raising concerns about ETH's ability to make a strong recovery.

Murphy published statistical data on social media revealing that the average cost base of ETH positions created between January and February 2025 ranges from $3,200 to $3,500. A significant set of addresses accumulated around 1.66 million ETH, significantly increasing their holdings at the $3,475 level. This group didn't buy the dip when ETH fell to $1,900 and is currently holding 1.94 million ETH, bringing their average cost down to $3,150.

Meanwhile, addresses that opened positions in mid-February 2025 had an entry cost ranging from $2,600 to $2,800. As the price of ETH fell below $2,300, the group began to offload their holdings. Currently, only positions at ETH( level of $2,800 )1 million ETH( and $2,630 )850,000 remain unchanged.

While ETH continued its downward trajectory, new demand weakened significantly, especially with the price falling below $2,000. The data shows that buying interest has almost disappeared at these levels.

Murphy explained that investors who have accumulated ETH at higher price points have now exhausted their purchasing power after a series of attempts to reduce their costs on average. The $1,850 price level represents a cost basis for a large group of investors who formed positions two years ago. When ETH approaches this level, they tend to buy back the parts that were previously sold to lower their overall costs, potentially creating a support zone. However, according to the analyst, if $1,850 fails to hold, ETH could slide towards $1,600 or even $1,250, where the accumulation from three years ago could provide the last major support.

According to Murphy, the market's recovery depends on rebuilding investors' confidence in ETH's long-term value. Without a renewed consensus, large accumulations at the $2,630, $2,800 and $3,150 levels could act as an important resistance and limit any potential rebound.