Ethereum (ETH) has been on a bit of a rollercoaster lately. While it’s up over 5% in the last 24 hours, it’s still down 11% for the week. But there’s some good news.
A Key Support Level?
Data analysts at Glassnode have spotted a potential price floor for ETH: $1,886. They’re using something called “Cost Basis Distribution” (CBD) – basically, it tracks the prices at which people bought and sold ETH.
Glassnode found a huge amount of ETH was bought around $1,886. Specifically, holdings at that price jumped from 1.6 million ETH to 1.9 million ETH – a 300,000 ETH increase! This suggests many investors see $1,886 as a key support level, and they’re likely to buy more if the price drops further, preventing a bigger crash.
This analysis backs up Glassnode’s other data, which looks at how much pain investors are feeling (based on sell-offs and price drops).
But It’s Not a Guarantee
It’s important to remember that $1,886 is likely only short-term support. If selling pressure gets really intense, the price could still fall below it.
Where is ETH Headed?
Right now, ETH is trading around $1,924. Daily trading volume is down, but an indicator called the Relative Strength Index (RSI) hints that a price bounce might be coming soon.
However, if ETH wants to climb significantly, it’ll have to break through resistance levels at $2,249, $2,539, and $2,829. On the flip side, falling below $1,886 could send it down to $1,650 or even $1,132. So, it’s a pretty uncertain situation.
