Blockchain analytics platform Glassnode has posted on X, highlighting the current fragile Ethereum (ETH) market structure.
As the platform noted, 41% of the altcoin’s market capitalization is held by investors with a cost basis between $2,300 and $2,500.
This is significant as it determines the selling pressure of the top coin.
Ethereum (ETH) Price Cost Basis Analysis
Currently, the total Ethereum market cap is capped at $324.28 billion, gradually inching towards $500 billion.
According to Glassnode, 41% of this market cap, which is about $123 billion, is in the hands of investors with a cost basis lying between $2,300 and $2,500.
Image Source: Glassnode on X
This, as per Glassnode analysis, indicates a fragile market position.
Any drop below the lower extreme of the range would trigger widespread panic selling from holders.
The heatmap shared by Glassnode gives a visual representation of the distribution of Ethereum market cap by profit and loss. However, a significant percentage of holders are at the breakeven point.
This pattern was seen in 2018, just when Ethereum saw a sharp decline from $300 to $80.
Ethereum (ETH) price has had some strong fundamental showcase in the last few years.
In 2024, it completed the transition from the Proof-of-Stake (PoS) mechanism to the Proof-of-Work (PoW) consensus mechanism called The Merge.
Other substantial milestones in the Ethereum ecosystem are staking and the implementation of EIP-1559.
These innovations have spotlighted Ethereum as a protocol with enhanced functional infrastructure.
Still, the ecosystem may encounter short-term risk due to the stagnancy of stablecoin volumes and the growing dominance of Bitcoin. Such sentiments can divert capital away from the Ethereum ecosystem.
Standard Chartered Price Prediction
Amidst the fragile market structure of Ethereum, Standard Chartered predicted that Solana (SOL) may lag behind ETH for about 2-3 years.
This projection lies in the heavy reliance on memecoin trading.
Standard Chartered analysts acknowledged some of Solana’s key features, such as its speed and low cost.
Image Source: BtcSolver on X
While these features make it a “powerhouse,” the dependence on memecoin trading puts it at a disadvantage. Unfortunately, this disadvantage could set Ethereum up for its next biggest move.
The financial giant sees SOL climbing as high as $500 in the next four years. SOL price was trading at $178.11, corresponding with a 1.86% increase within the last 24 hours.
For the altcoin to reach the projected level, it would need to record more than a 200% increase in that time
Standard Chartered sees the possibility of the ETH-SOL ratio rising to 17 by 2027, a move that could favor Ethereum in the short term.
Compared to Solana, Ethereum is perceived as more diverse, which gives it an edge. It is worth noting that such comparisons between Ethereum and Solana have become a trend these days.
In some instances, some analysts pick Solana as the favorite to outpace in the long term
Ethereum (ETH) Price Forecast, What to Expect
At the time of writing, the price of Ethereum price was pegged at $2,631.95 after registering a 0.03% uptick within the last 24 hours.
This has been the trend in the last few days, as Ethereum trades within a tight range between $2,400 and $2,750.
Analysts see this pattern as a bull flag that might mean more for the coin moving forward.
Some analysts have suggested that Ethereum shows strong signs of a significant breakout, despite not breaching its previous all-time high (ATH) like Bitcoin
Based on this, they project that it may climb to $4,000 by December 2025 .
In line with this projection, crypto analyst Martinez has emphasized $3,100 as the next significant resistance to watch for the coin
