Ethereum (ETH) Showing Signs of Bottoming Out, Glassnode Analysis Suggests
Ethereum (ETH) appears to have hit a bottom based on various on-chain metrics, as per insights provided by crypto analytics firm Glassnode.
Cost Basis Distribution Heatmap Indicates Strong Support at $1,886
Glassnode has analyzed a cost basis distribution (CBD) heatmap, which reveals the number of ETH positions that break even at different price levels. The current data suggests that Ethereum has robust support around the $1,886 mark.
“Ethereum’s Cost Basis Distribution (CBD) shows rising supply at $1,886, increasing from 1.6 million to 1.9 million ETH. This suggests a potential short-term price floor as investors accumulate at these levels, reinforcing support.”
Capitulation Metric Indicates Possible ETH Rally
According to Glassnode, the $1,886 price level aligns with its “Capitulation Metric” for ETH, which combines CBD data with realized loss information. Historical data shows that spikes in the Capitulation Metric often precede Ethereum price rallies.
Influx of Stablecoins Signals Bullish Sentiment
Glassnode also highlights a significant increase in the supply of stablecoins, a factor often viewed as positive for the crypto market due to the added liquidity they bring.
“Since Jan 1st, the aggregate stablecoin supply has increased by $20.17 billion (+10.9%), now reaching more than $205 billion.
For comparison, the December peak clocked in at $187 billion but the supply actually contracted in the last two weeks of 2024 and dropped to $185 billion by January 2025.”
As of the latest update, ETH is trading at $1,890.
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