Ethereum (ETH) might have finally bottomed out, according to the cryptocurrency analytics firm Glassnode. Their analysis suggests a strong support level is in place.
On-Chain Data Points to Support
Glassnode used a cost basis distribution (CBD) heatmap to reach this conclusion. This heatmap shows how many ETH holdings break even at different price points. The firm found a significant concentration of ETH positions breaking even around $1,886. They say this indicates strong support at that price level, with a notable increase in ETH accumulation around this price.
Capitulation Metric Supports the Claim
Glassnode’s “Capitulation Metric” further strengthens their argument. This metric combines CBD data with realized losses. Historically, spikes in this metric have often preceded rallies in ETH’s price. The current situation aligns with this pattern.
Stablecoin Surge Adds to Positive Outlook
Adding to the positive signs, Glassnode also noted a significant increase in the supply of stablecoins. Since January 1st, the total supply has grown by over $20 billion, reaching over $205 billion. This influx of stablecoins could bring more liquidity to the market, potentially boosting crypto prices.
Current Price and Disclaimer
At the time of writing, ETH is trading just above $1,890. It’s important to remember that this analysis is not financial advice. Always do your own research before investing in cryptocurrencies.
