Ethereum's Long Capitulation Phase May Be Setting Up for a Bullish Rebound

Ethereum's recent capitulation phase has been one of the worst in its history, but on-chain data suggests that it could be a precursor to a bullish phase.

The majority of ETH supply has been underwater since late January, with about 45.7 million coins held at a loss compared to just 31.6 million in gains.

Despite this, the market is showing signs of recovery, with the average breakeven price rising back towards $1,880 and Ethereum's price currently trading around $1,890.

The next challenge for Ethereum is above its current price, at the declining 100-day EMA of around $1,935. A decisive close above this level could strengthen the recovery and draw attention to the psychologically significant $2,000 level.