Ethereum's Capitulation May Be Setting Up for a Big Bounce

Ethereum's price has been struggling for months, but recent data suggests that this may be setting up for a big bounce. According to on-chain analysis, Ethereum has been in 'capitulation' mode for almost six months, meaning that most of the supply is underwater, with more coins held at a loss than at a profit.

However, as the market starts to recover from its recent pressure, the average breakeven price is rising back towards $1,880. This is interesting because long-lasting market bottoms are often caused by similar circumstances. Ethereum's price has made a significant comeback from its capitulation low in June, which was around $1,500.

Despite recent consolidation, momentum remains positive, with the RSI between 58 and 60, indicating strong buying pressure without going into overbought territory. This allows bulls to keep rising if general market conditions stay favorable.