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On-chain data suggests Ethereum may face minimal resistance levels until reaching $3,417, potentially paving the way for further upward movement.
Ethereum Cost Basis Distribution Indicates Spread Out Resistance Ahead
In a recent update on X, the on-chain analytics firm Glassnode discusses the current Cost Basis Distribution for Ethereum. This indicator reveals the distribution of the asset’s supply based on the price levels at which it was last purchased.
First, here is a chart illustrating how Ethereum’s recent breakout has interacted with the Cost Basis Distribution:
The chart indicates that Ethereum has successfully surpassed significant supply levels, with notable concentrations at $2,700, $2,740, and $2,760. These levels hold the cost basis of a considerable amount of ETH, suggesting potential resistance points as investors may react to price movements near these levels.
As Ethereum has now reclaimed these supply zones after a month-long struggle, it signifies a breakthrough in overcoming resistance barriers. The concentration of supply levels can trigger selling reactions from holders when the price retests these levels from below.
Additionally, the support effect can come into play as these levels may now act as strong support zones, where investors who accumulated during consolidation might view price declines as buying opportunities or seek to protect their acquisition boundary.
Another chart shared by Glassnode displays the Ethereum Cost Basis Distribution for upcoming levels, showing a more uniform distribution of supply without strong clusters until $3,417, where a significant amount of ETH’s cost basis is held.
According to Glassnode, if the $2.70K–$2.76K support range holds, Ethereum’s path to $3.42K remains open, with holders in the $2.8K–$3.3K range shaping the pace of ETH’s climb, which has already seen a 47.5% increase year-to-date.
ETH Price Update
After briefly surpassing $2,830, Ethereum has retraced to $2,780. The price chart indicates fluctuations in ETH’s value over the past few days.
Image credits: Dall-E, Glassnode.com, chart from TradingView.com