Ethereum Price Struggles To Hold Above $2,500 — Watch Out For This Support Level

The recent performance of the Ethereum price in May has been remarkable, with a surge of over 35% in the last two weeks. Although the altcoin made a strong push towards $2,700 on May 13, it has faced challenges in maintaining momentum in the following days.

While ETH managed to stay above $2,500 during the week, bouncing back from this level on May 15, it struggled over the weekend and ultimately dropped below $2,500 to close the week.

The Next Support Level for ETH Price

Prominent crypto analyst Ali Martinez shared an insightful on-chain analysis of Ethereum’s price and its current lack of bullish momentum. Following ETH’s dip below $2,500, Martinez identified the next significant support level for the altcoin.

This analysis focuses on the average cost basis of Ethereum investors, measuring the support or resistance levels based on the total amount of coins purchased at specific price points. The chart indicates key support around the $2,354 – $2,430 zone, where a significant number of addresses acquired tokens at an average price of $2,395.

Investors with cost bases in this range are likely to defend their positions by buying more tokens if the price drops towards $2,400, creating a supportive cushion for ETH. This buying pressure could counter downward momentum and help maintain the Ethereum price.

While the chart suggests clear skies ahead for Ethereum’s price, holding above $2,400 is crucial to avoid a potential drop to $2,200.

Ethereum Price Overview

Currently, ETH is trading around $2,480, showing a 0.7% increase in the past 24 hours. Weekly data from CoinGecko indicates a 4% decrease in value.

Image source: iStock, chart source: TradingView