The Ethereum (ETH) Market Overview

The Ethereum (ETH) market has seen a recent rise of over 5% in the past 24 hours. However, despite this gain, ETH is still in a downtrend with an 11.17% loss over the last week.

Investors Boost Accumulation By 300,000 ETH At This Price Region – What Could It Mean?

An analysis by Glassnode highlights a potential support level for ETH at $1,886. They note that based on the Cost Basis Distribution (CBD) metric, this price point may provide short-term support in the event of further declines.

In cryptocurrency, CBD tracks the last sold or bought price levels of tokens. An increase in the number of coins acquired in a specific price range often indicates future support or resistance.

Glassnode reports that the supply of ETH owned at the $1,886 level has risen from 1.6 million ETH to 1.9 million ETH, with 300,000 ETH acquired when prices last reached this level. This trend suggests that many investors consider $1,886 a crucial price point where they are likely to increase holdings to prevent further decline, thus potentially creating support.

This observation is aligned with Glassnode’s custom capitulation metric, which measures price capitulation events influenced by weighted sell volumes and investors’ economic distress. However, $1,886 may only offer short-term support amid strong selling pressure.

Ethereum Price Overview

As of now, Ethereum is trading at $1,924, following a 5% gain in the last day. The market’s daily trading volume has decreased by 29.29%, totaling $12.91 billion. Moreover, the Relative Strength Index indicates Ethereum might soon enter an oversold region, hinting at a potential price reversal.

ETH bulls face resistance zones at $2,249, $2,539, and $2,829 to execute any significant rebound and halt the downtrend. Conversely, if prices fall below $1,886, further declines to $1,650 or $1,132 could occur.

Featured image from iStock, chart from Tradingview