The Ethereum market is experiencing notable fluctuations, showcasing its resilience yet also revealing its vulnerabilities. After a period of promising performance, the cryptocurrency seems to be hitting a plateau, struggling particularly at the $2,700 mark.
Despite temporary bullish phases during recent trading sessions, Ethereum’s price has shown significant resistance when attempting to maintain levels above $2,700, prompting a rapid decline back to where it began the week. The following sections delve into the reasons behind these challenges.
Insights Behind ETH’s Struggles Above $2,700
In an investigation shared by blockchain data company Glassnode, recent technical analysis has provided critical insights into why the Ethereum price has continuously fallen short above the $2,700 level. The forthcoming pivotal price target for ETH is projected around $2,800.
Key to understanding this movement is the concept of cost basis distribution (CBD). This metric reveals how the total Ethereum supply is distributed among addresses at varying average purchase prices.
The accompanying chart illustrates the CBD metric through a heatmap, with distinct price ranges represented on the vertical axis and a specific time frame on the horizontal. This serves as a valuable tool for identifying how investor sentiment shifts over time.
According to Glassnode’s analysis, a notable aggregation of investor cost-basis clusters exists around the $2,800 mark, suggesting numerous investors entered the market at this price point.
This observation implies that as Ethereum approaches this critical zone, increased sell pressure may emerge, stemming from earlier investors eager to break even or secure profits. This behavioral trend underlines the hesitance in maintaining upward momentum as the price nears this level.
The ramifications of such sell-side pressure reveal the underlying dynamics of Ethereum’s trading activity. For the cryptocurrency to confidently ascend beyond this hurdle, demand must significantly exceed selling activity within the identified CBD area.
Should Ethereum continue to grapple with these pressures around the $2,800 price range, it may pose a risk of retreating to its next significant support level, speculated to be approximately $2,380 as indicated by market analyst insights.
Current Ethereum Price Snapshot
At present, Ethereum’s value hovers around $2,0, representing a minor decline of less than 1% over the last day.
