IntoTheBlock, a market intelligence platform, believes Ethereum (ETH) has strong on-chain support that should keep its price above $4,000.
Key Support Levels
IntoTheBlock highlighted significant on-chain demand zones for ETH. Their analysis shows that a large number of investors bought ETH around $3,772 to $4,011. Specifically, 7.2 million ETH (roughly $28.4 billion at current prices) was purchased within these price ranges. Higher price ranges show much less buying activity.
Why These Levels Matter
These price ranges are important because they represent the cost basis for many investors. When the price retests these levels:
- Profitable investors: Might buy more, expecting further price increases.
- Investors at a loss: Might sell to break even, fearing further losses.
With so many ETH purchased in these zones, a price retest could trigger significant buying pressure, acting as support for the price. Ethereum recently dipped slightly into this region, so it’s a waiting game to see if this support holds.
Accumulation Trend
IntoTheBlock also noted a negative Ethereum Exchange Netflow since December 1st. This means more ETH is leaving exchanges than entering them. Over 400,000 ETH has flowed out, suggesting investors are accumulating ETH rather than selling.
Current Price
At the time of writing, ETH is trading around $3,950, up 10% in the last week.
