Ethereum Struggles to Break Through Resistance, Investors Remain Hopeful
Ethereum has faced challenges in maintaining an upward trajectory as it failed to surpass the $2,800 resistance level, resulting in a significant decline in its price to below $2,500 amidst bearish market conditions.
Nevertheless, investors in Ethereum have displayed optimism, viewing the price drop as an opportunity to accumulate more at lower levels.
Insights from the Cost Basis Distribution (CBD) data indicate that Ethereum investors have continued to accumulate even as the price experienced a downturn. The data suggests that market participants are taking advantage of the dip, with multiple cost bases shifting lower.
Notably, there is strong support seen at the $2,632 level, where 786,660 ETH has been acquired, while 1.22 million ETH has been accumulated at the $3,149 resistance level. These levels play a crucial role in determining Ethereum's price stability, reflecting significant buy and sell zones for investors. As Ethereum's price fluctuates within these ranges, the market sentiment remains cautiously positive.
The overall momentum for Ethereum appears robust despite recent price setbacks, as evidenced by a significant outflow of 178,500 ETH from exchanges in the last 48 hours. This movement implies that investors are opting to hold their assets off exchanges, potentially anticipating long-term gains once the bearish phase subsides. The substantial outflows, totaling around $444 million, indicate a high level of confidence in Ethereum's eventual recovery.
Currently priced at $2,486 after an 11% decline in the past 48 hours, Ethereum aims to reverse its downwards trend by breaking above the $2,654 level and establishing it as a strong support zone. If successful, Ethereum could retest the $2,793 resistance level and target the key psychological barrier of $3,000.
However, failure to reclaim $2,654 may lead to further price drops, with a potential downside target at $2,344. In such a scenario, the bullish outlook for Ethereum could be challenged, prompting investors to await clearer signals of a potential reversal in price dynamics.
Source: Adapted from Glassnode and TradingView data.