The recent downturn in the cryptocurrency market has seen Ethereum (ETH) experience a significant decline of 17.08% over the past week, dropping to as low as $2,104. Despite some minor gains in the last 12 hours, the overall sentiment in the market remains bearish.
Analysts are now closely watching the ETH market for potential key support levels as it navigates a strong correction. Glassnode, a leading on-chain analytics firm, has highlighted the $1,890 mark as the next major accumulation zone for Ethereum. The Cost Basis Distribution (CBD) metric indicates that this level has seen significant investor activity, with approximately 1.82 million ETH acquired in August 2023.
A two-year analysis of Ethereum’s CBD data reveals that investors who accumulated ETH at $1,890 in August 2023 have remained active. Many of them have increased their cost basis during market fluctuations in November 2024, showing strong confidence in the long-term price appreciation of Ethereum.
While $1,890 is seen as a key accumulation zone, Glassnode also points out $2,100 as the next support level for ETH if the correction continues. This level holds around 500,000 ETH, indicating less accumulation compared to $1,890. Investors can expect $2,100 to provide short-term support before a potential deeper correction to $1,890.
In addition, Glassnode’s analysis of the Ethereum market over the past six months shows that investors are actively absorbing market supply at cost basis levels around $3,500. Despite the decline in cost basis, there is an increasing concentration of investors at this level, suggesting a belief in long-term gains rather than selling off during price dips.
Currently, Ethereum is trading at $2,250 with a 3.84% gain in the last day. Despite a 30.48% loss over the past month, the market activity has increased by 7.74% and Ethereum is valued at $29.91 billion. Investors and analysts will continue to monitor the ETH market closely for further developments as it navigates through the ongoing correction.