The performance of Ethereum’s price throughout May has been exceptional, boasting a rise of over 35% within the last fortnight. After a robust push towards the $2,700 mark on Tuesday, May 13, the altcoin’s price has since encountered difficulty maintaining its momentum.
Despite these struggles, the price of ETH managed to stay above the $2,500 threshold for the past week, rebounding from this crucial level on Thursday, May 15. However, the struggle intensified over the weekend, causing Ethereum’s price to dip below the $2,500 mark as the week concluded.
Anticipating ETH Price’s Next Support Level
Crypto analyst Ali Martinez employed social media to share an intriguing on-chain perspective on Ethereum’s price and its recent lack of bullish drive. Following Ethereum’s dip below the $2,500 mark, Martinez pointed out the altcoin’s next significant support level.
This assessment focuses on the average cost basis of various Ethereum investors. Cost-basis analysis essentially gauges the potential of a price level to serve as support or resistance, based on the total volume of coins last purchased by investors at that price point.
The chart reveals that the size of the circles directly correlates with the number of ETH tokens bought within each price range and the relevance of the region as either support or resistance. Therefore, larger dots represent a higher quantity of tokens and stronger support or resistance. Green dots indicate support (typically below the current price), while red dots signify resistance (above the asset price).
Data from Sentora (previously IntoTheBlock) indicates that Ethereum’s price has considerable support around the $2,354 – $2,430 zone, where 2.64 million addresses purchased 63.9 million tokens (valued at $153.04 billion at an average price of $2,395).
As Martinez pointed out, this price range could serve as an on-chain buffer for the ETH price. Investors with cost bases around this level would likely protect their positions by purchasing more tokens if the price approaches $2,400. This anticipated buying pressure could offset downward pressure, thereby helping to sustain the price of Ethereum.
The highlighted chart illustrates a clear path for the price of Ethereum, with no significant resistance in sight. However, the altcoin needs to stay above the $2,400 level, or it risks dropping to as low as $2,200.
Ethereum Price Quick Check
At the time of writing, ETH is trading at approximately $2,480, reflecting a 0.7% rise in the last 24 hours. CoinGecko data reveals that the altcoin has fallen by nearly 4% on a weekly basis.
