Ethereum To $3,400? On-Chain Shows No Big Hurdles Ahead

Reason to trust

Editorial policy rejection that focuses on precision, relevance and impartiality

Created by experts in the sector and meticulously revised

The highest standards of reporting and publishing

Editorial policy rejection that focuses on precision, relevance and impartiality

Pretium leo et nisl alquam mollis measles. Quisque Arcu Lorem, ultricies quis pellesque nec, ullamcorper eu hate.

The chain data suggest that Ethereum does not face any dominant level of resistance up to $ 3,417, something that could open the path to the sign.

The distribution of the basis of the cost of Ethereum shows that the resistance in advance is more widespread

In a new post on X, the Analysis Company in the Glassnode chain spoke of how the distribution of the cost base is looking for Ethereum at this moment. The “cost distribution” is an indicator that tells us the amount of offer of the activity the last time the price levels.

Reading Reading

First of all, here is a graph that shows how it was the last breakout of the cryptocurrency from the point of view of this indicator:

Ethereum CBD
The price of the coin seems to have exceeded some concentrated supply areas Source: Glassnode on X

As displayed in the upper graph, Ethereum managed to break through some remarkable levels of supply with the latest price wave. Both levels of $ 2,700 and $ 2,740 hold the cost of approximately 1.3 million ET, while the $ 2,760 sign holds that of 800,000 ETH. In chain analysis, the levels concentrated with the offer are considered important, due to the simple fact that investors are likely to show a reaction to prices with the cost base.

When this test occurs from below, the owners can react by selling their coins. The loss investors can be desperate to return to the green, so when the price returns to their break, they can be panic and get out of the fear that will return underwater in the near future.

Of course, more investors who share their cost bases at a particular level, stronger this type of sales reaction tends to be. As such, the higher levels that hold a significant amount of supply can act as resistance barriers at the price of the hat. Ethereum was previously blocked under the aforementioned supply areas for a month, potentially due to this resistance effect, but now the cryptocurrency has finally claimed them.

Just as strong levels above can have resistance, those below can instead be a support center. As such, it is possible that the role of the supply walls of $ 2,700, $ 2,740 and $ 2,760 would now change. “These investors have accumulated during the consolidation and now they will potentially form a strong support area,” observes Glassnode.

The support effect can derive from the owners who transport a bullish mentality and look at the drop in the base of the costs as an opportunity to purchase Dip or simply from them who want to protect their acquisition border.

Now, here is another chart shared by the analysis company that shows how the distribution of the basis of the cost of Ethereum is looking for levels in view of the latest spot value:

Ethereum Resistance
The potential resistance that could stick to Eth | Source: Glassnode on X

From the graph, it is visible that the levels to come have the supply of Ethereum distributed in a more uniform way, without strong clusters present up to $ 3,417. More specifically, the price levels before this brand contain from 200,000 to 400,000 ETH to each $ 50 gap. In comparison, the level of $ 3.417 currently holds the cost of approximately 607,950 ETH.

Reading Reading

“If the support range of $ 2,70k – $ 2.76k of $ 2.76k, the $ 3.42k route remains technically open – but the response of owners in the $ 2.8k range – $ 3.3k will define the speed with which Eth can climb – is currently already 47.5% on QTD”, explains Glassnode.

Eth price

Ethereum briefly broke over $ 2,830 on the past day, but since then the coin has faced a Pullback as it returned to $ 2,780.

Ethereum price graphics
The trend at the ETH price in the last five days | Source: Ethusdt on TradingView

In the foreground image from Dall-e, GlassNode.com, graphic designer from tradingView.com

Leave a Comment