Ethereum, the popular cryptocurrency, is currently showing signs of potential growth as on-chain data suggests that it may not face any dominant resistance levels until it reaches $3,417. This opens up a path for Ethereum to potentially reach this milestone.
A recent analysis by Glassnode, an on-chain analytics firm, has highlighted the Cost Basis Distribution for Ethereum. This indicator provides insights into how much of the asset’s supply was last purchased at different price levels. The latest breakout for Ethereum has shown that the cryptocurrency has managed to break through key supply levels, including $2,700, $2,740, and $2,760, where a significant amount of ETH was last purchased. These levels are considered important in on-chain analysis as they can act as resistance barriers to price movements.
When ETH retests these levels from below, holders may react by selling their coins, potentially causing a selling pressure. However, now that Ethereum has reclaimed these supply zones, they could potentially turn into strong support zones instead. This is because investors who accumulated ETH during consolidation may view declines to their cost basis as buying opportunities or may want to protect their acquisition boundary.
Looking ahead, Glassnode’s analysis shows that the Ethereum supply is more evenly distributed at price levels below $3,417, with no strong clusters present until this mark. This indicates that there may not be significant resistance levels until Ethereum reaches $3,417. The response from holders in the $2.8K–$3.3K range will define how quickly Ethereum can climb towards this target.
In terms of price action, Ethereum briefly broke above $2,830 but has since faced a pullback to $2,780. The trend in the ETH price over the past five days shows fluctuations but also potential for growth.
Overall, the analysis of Ethereum’s Cost Basis Distribution and potential resistance levels suggests that the cryptocurrency has a clear path towards $3,417. With strong support zones in place and a more evenly distributed supply ahead, Ethereum may have the momentum to continue its upward trajectory.
Sources:
https://x.com/glassnode/status/1932722521284989177
https://x.com/glassnode/status/1932722523420176594
https://www.tradingview.com/chart/qFC1kfFd/