Comprehensive Ethereum Price Analysis: Current Trends and Future Outlook
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The Ethereum price has seen a considerable improvement in recent weeks compared to the first quarter of this year. However, this prominent altcoin still seems to be grappling with a recurring challenge, encountering resistance at a particular price point. Despite benefiting from a bullish trend over the week, Ethereum’s value faced downward pressure beyond the $2,700 threshold, eventually retreating to its earlier position. Below, we delve into the core reason behind Ethereum’s struggles to surpass the $2,700 mark.
Understanding Ethereum’s Resistance Above $2,700
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In a detailed analysis shared on May 24, blockchain analytics firm Glassnode provided fresh insights into the recent movements of Ethereum’s price. According to this reputable crypto platform, the next critical resistance level for Ethereum lies near $2,800.
This observation is rooted in the cost-basis distribution of Ethereum’s supply. The key metric here is the cost basis distribution (CBD), which indicates the total amount of Ethereum held by addresses with an average acquisition cost within specific price ranges.
Glassnode’s analysis reveals a significant concentration of investor cost-basis distribution around the $2,800 price level. This suggests a substantial number of investors purchased their Ethereum holdings at approximately this price.
Moreover, Glassnode highlighted that Ethereum’s price might experience notable selling pressure as it nears the $2,800 CBD cluster. This pressure arises from investors who previously faced losses and are now eager to sell their assets as they approach a breakeven point.
This on-chain analysis offers a clear explanation for Ethereum’s repeated rejections above $2,700 in recent weeks. For Ethereum to decisively break through this level, the demand for the cryptocurrency at the $2,800 cluster must exceed the prevailing selling pressure.
However, if Ethereum continues to face substantial selling pressure around the $2,800 mark, its price may decline to the next support level. Renowned analyst Ali Martinez, via the social media platform X, identified the next significant support zone for Ethereum around $2,380.
Ethereum Price Overview
At present, Ethereum is valued at approximately $2,0, reflecting a marginal decline of less than 1% over the past 24 hours.
An overview of Ethereum’s daily time frame price chart provides further insights into its market performance. View the ETHUSDT chart on TradingView.
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