- Three key price levels have been identified as potential support and resistance for Ethereum.
- Cost basis clusters show 822K ETH purchased at $1,546, creating major support.
- Ethereum drops 4.5% in 24 hours while maintaining a 6.2% weekly gain amid volatility.
Blockchain analytics firm Glassnode has identified three critical Ethereum price levels that could shape its near-term price action, based on cost basis distribution data. According to their analysis, large amounts of ETH have been accumulated at specific price points. This could potentially create important technical zones as the cryptocurrency consolidates.
According to Glassnode, these zones may act as near-term support and resistance as price consolidates. Further, the statistics reveal that the majority of the buying occurred at $1,546, where over 822,000 ETH was traded. There was also massive buying at $1,598 (725,000 ETH) and $1,457 (408,000 ETH). These figures highlight the potential buying interest if Ethereum hits these levels. This is due to the fact that buyers at these levels prefer to cover their costs in order to avoid a loss. The $1,546 level is notable since it recorded massive buying of ETH.
ETH Faces Key Levels Amid Market Uncertainty
Ethereum is currently under selling pressure with a loss of 4.5% in the past 24 hours. However, it had a 6.2% increase over the last week. Despite the price weakness, some analysts are still positive. Pointing to a neat weekly structure and good support levels, crypto analyst Belle stated that ETH is quietly constructing something special.
Similarly, another analyst, CryptoGoos, stated that “ETH sellers are exhausted. A magic rally is coming SOON!” while Carl Moon identified a potential “ descending channel ” breakout that could take Ethereum toward $3,000 if sufficient volume materializes.
The yearly performance remains challenging, with ETH down 49.2% over the past 12 months. However, this may also mean that the asset is oversold, setting the situation for a potential rebound., if the major levels of support found by Glassnode hold.
Related: Ethereum Holders Find Big Yields (20%+) in DeFi Vaults as ETH Consolidates
Further, if the $1,546 support holds, it could be the foundation for an upward move to $1,598. But, if it drops below $1,457, it could result in more selling as traders at that point may be forced out. As ETH consolidates, these cost basis levels offer crucial insights into how market participants are likely to react. With that in mind, market observers await in anticipation.
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