Now that the asset has crossed the $2,100 threshold, on-chain data indicates that Ethereum may have a road to $2,500.
The market intelligence portal IntoTheBlock has updated the Ethereum levels for on-chain support and resistance in a recent article on X. Ranges are classified as support or resistance in on-chain research according to the number of investors that bought coins inside them.
The density of addresses at different elevations above and below the cryptocurrency’s current spot price is displayed in the chart below:
Ethereum Reaches $2,100: Smooth Road to $2,500 Insight,Ethereum Reaches $2,100: Smooth Road to $2,500 Insight
In general, investors may be more likely to see a shift anytime the Ethereum price retests their cost basis. When a retest occurs from above, the holder could be more likely to purchase since they think the price will rise sooner rather than later. They might also perceive the retest as a “dip.”
However, if the retest comes from below, the investor could want to sell the market because they believe that the price will drop further. By selling at break-even, they would at least be able to avoid losing money.
A small number of investors exhibiting this kind of behaviour is certainly insufficient to have any discernible impact on the market; nevertheless, if many investors have the same cost basis, the asset may very well experience a sizable reaction.
It is evident from the chart that there are a few sizable cost basis centres situated beneath the present Ethereum levels, indicating the existence of robust potential support ranges.
The asset had previously fallen below $2,000, and the region between $2,000 and $2,100 was the final significant resistance limit to breach. Given that the currency has now moved above these levels, it’s probable that the range will now be acting as support instead of resistance.
About 75% of the holders are currently profitable as a result of this most recent surge (their cost basis is in the ranges below). Up until the $2,500 threshold, as the graph illustrates, there are no price ranges with a large density of investors in the next price levels.
Does this imply a flawless transition to a new ATH? Not always, IntoTheBlock clarifies. Pullbacks are typically the result of profit-taking at these levels, according to history. On the other hand, Ethereum’s long-term trajectory is unlikely to be materially impacted by this.
Ethereum Reaches $2,100: Smooth Road to $2,500 Insight,Ethereum Reaches $2,100: Smooth Road to $2,500 Insight,Ethereum Reaches $2,100: Smooth Road to $2,500 Insight , Ethereum coin Crypto news, Ethereum coin News