Ethereum’s been doing better lately, but it keeps hitting a wall around $2,700. Let’s look at why.
The $2,700 (and $2,800) Hurdle
Blockchain analytics firm Glassnode recently shed light on this price resistance. They say the next big hurdle for Ethereum (ETH) isn’t actually $2,700, but closer to $2,800.
This is based on something called “cost-basis distribution” (CBD). Basically, it shows how many ETH holders bought their coins at different prices. Glassnode’s charts show a huge concentration of ETH around the $2,800 mark.
This means a lot of investors bought ETH around $2,800. As the price approaches this level, many of them might be tempted to sell to break even—creating significant selling pressure and preventing the price from going higher.
The Pressure is On
To break through this $2,800 resistance, the buying pressure needs to be stronger than the selling pressure from those looking to recoup their investments. If it doesn’t, the price could drop further.
What’s Next for ETH?
Analyst Ali Martinez points out that the next major support level for ETH is around $2,380. This means if the price can’t hold above $2,800, it could fall to this lower level.
At the time of writing, ETH is trading around $2,000, down slightly from the previous day.
