Posted on

Ethereum “Set For Further Gains,” Analyst Puts This Target

An analyst has explained that Ethereum could be set to see a further rally based on on-chain data. Here’s the level ETH may end up surpassing.

Ethereum Has No Significant On-Chain Resistance Ahead

In a new post on X, analyst Ali has discussed how Ethereum’s support and resistance levels are looking like based on on-chain data. In on-chain analysis, the potential for any level to provide any notable amount of support/resistance to the price depends on the number of investors who acquired their coins.

Here is a chart that shows the amount of ETH that was bought at some of the price ranges that the asset has visited before:

Ethereum On-Chain Support & Resistance

The graph shows that the $2,235 to $2,302 range carries the cost basis of a significant number of coins. More specifically, 1.84 million addresses acquired more than 6 million ETH inside this range.

Currently, the Ethereum price is trading just above this range, implying that all these investors are in the green. If the Ethereum spot price retraces into this range, these holders could show some reaction, as their profit-loss boundary would be retested.

Since these holders would have been in profits just before the retest, they might want to buy more, as they may believe that this same price range that was profitable earlier might turn out to be a worthy buy again.

Since the range is thick with investors, this buying effect that may arise on a retest could end up providing support to the price. If the support fails, the price might be between $1,958 and $2,029.

This range is much more robust, hosting a cost basis of over 37 million ETH. Ali notes that this support could potentially help cushion any corrections that may take place.

Now, Ethereum has strong support below, and as is apparent in the chart, there is no major demand wall above it simultaneously. Investors in loss (those with a cost basis higher than the current spot price) may be desperate to escape the market, so the price rising to their break-even can be an enticing exit opportunity.

If many holders are sitting at a loss, their demand zone could provide significant resistance to the price because of such selling. ETH has no such obstacles in the nearby price ranges so that the coin could rally further. “The path ahead of ETH is clear, with no significant supply barriers in sight, suggesting a potential rise to $2,700 or beyond,” explains the analyst.

The market intelligence platform IntoTheBlock has also shared a chart that could provide further evidence for a bullish case of Ethereum.

Ethereum Long-Term Holders

As is visible in the above graph, the percentage of Ethereum investors who can be classified as “HODLers” (1 year+ holding time) has shot up recently. “This year, the percent of long-term ETH holders surpassed that of Bitcoin for the second time ever!” notes IntoTheBlock.

ETH Price

Ethereum is currently at the $2,316 mark, not too far above the support zone mentioned earlier.

Ethereum Price Chart

Posted on

Ethereum Conquers $2,100: On-Chain Data Paints Path To $2,400

Ethereum has cleared the $2,100 level during the past day, and if on-chain data is anything to go by, a rally to new yearly highs should be “easy.”

Ethereum Has No Major On-Chain Resistance At Higher Levels

An analyst in a post on X explained that Ethereum has overcome a major on-chain resistance zone with its recent price rally. The on-chain resistance and support levels are defined based on the density of investors who bought at them.

The reason behind this lies in how investor psychology tends to work. For any investor, their cost basis is an important level, so whenever the price retests, they pay special attention and might be tempted to make some kind of move.

A holder who had been at a loss before the retest might lean towards selling, as they may fear the cryptocurrency would dip below it again, so exiting at the break-even would at least mean they would avoid losses.

Similarly, an investor might decide to accumulate more if they had been in profits earlier, as they would see this same level as a profitable point of entry into the asset.

Now, here is a chart that shows how the Ethereum price ranges around the current price are looking in terms of the density of investors who share their cost basis there:

Ethereum Support & Resistance

As displayed in the above graph, the Ethereum price range between $1,982 and $2,044 hosts the cost basis of about 1.67 million addresses, which acquired 38.73 million ETH at these levels.

Naturally, the more investors that share their cost basis inside a specific range, the stronger the reaction that the price would feel when it retests due to the aforementioned buying/selling effects.

Thus, this range that’s thick with investors would be a significant zone for the cryptocurrency. Since Ethereum has already surged past this area and has gained some distance over it with its latest break, the range is likely to play the role of support now.

Ethereum has this strong support area under its belt, while at the same time, there are no major resistance zones immediately above, as is apparent from the chart. This ideal setup means that, in theory, ETH shouldn’t have much trouble rallying towards the $2,426 level.

Another analyst has also pointed out how Ethereum has observed negative exchange netflows since the start of the month. The exchange netflow here is an indicator that keeps track of the net amount of ETH exiting or entering the wallets of all centralized exchanges.

Ethereum Netflows

The net outflows have amounted to over $1 billion during this period, a potential sign that significant buying has been occurring in the space. This certainly fuels the idea that ETH could explore new yearly highs shortly.

ETH Price

At the time of writing, Ethereum is trading at around $2,100, up 9% in the past week.

Ethereum Price Chart

Posted on

Ethereum At $2,100: Why Path To $2,500 Is Now All Clear

On-chain data suggests the path to $2,500 could be open for Ethereum now that the asset has managed to cross the $2,100 mark.

Ethereum Has No Major Resistance Levels Until $2,500

In a new post on X, the market intelligence platform IntoTheBlock has provided an update on how the Ethereum levels are looking in terms of on-chain support and resistance. In on-chain analysis, ranges are defined as support or resistance based on how many investors acquired their coins inside them.

The below chart shows the density of addresses at various levels above and below the current spot price of the cryptocurrency:

Ethereum Support & Resistance

Generally, whenever the Ethereum price retests the cost basis of an investor, they may be more likely to show some kind of move. When this retest happens from above, the holder may be inclined to believe the price will go up again soon so they may see the retest as a “dip” and thus, might decide to buy more.

Related Reading: Polygon (MATIC) Jumps Another 6% As Whales Show High Activity

On the other hand, the investor may want to exit the market if the retest is from below, as they might fear the price would go down again in the future, and by selling at the break-even mark, they would at least avoid incurring any losses.

A few investors showing such behavior is obviously not enough to cause any visible effects on the market, but if a large number of investors share the same cost basis, the asset could very well feel a sizeable reaction.

From the chart, it’s visible that there are some large cost basis centers below the current Ethereum levels, suggesting the presence of strong potential support ranges.

Earlier, when the asset had still been below $2,000, the $2,000 to $2,100 range posed as the last major resistance boundary to break. Since the coin has now risen above these prices, it’s possible that the range would be switching its role towards being support instead.

Following this latest rally, about 75% of the holders are now in profit (that is, their cost basis is in the levels below). As is visible in the graph, there are no price ranges with a high density of investors in the upcoming price levels, until the $2,500 mark.

“Does this mean it’s a clean run to a new ATH? Not necessarily,” explains IntoTheBlock. “Historically, profit-taking at these levels is common and leads to pullbacks. However, this is unlikely to significantly impact Ethereum’s long-term trajectory.”

Analyst Ali Martinez has also pointed out something interesting in an X post today. He revealed that the latest rally in ETH has occurred without the support of the largest of the Ethereum whales (carrying a balance greater than 10,000 ETH), the so-called “mega whales.”

Ethereum Mega Whales

As highlighted in the graph, the total number of addresses owned by the Ethereum mega whales has been flat recently. “Ethereum has reclaimed the $2,000 threshold, and intriguingly, this is all happening before whales have even started buying ETH!” notes Ali.

ETH Price

After a surge of more than 9% in the past 24 hours, Ethereum has arrived at the $2,100 level for the first time since April.

Ethereum Price Chart