Ethereum Cost Basis Data Signals Strong Support At $1,886 - Details

The Ethereum (ETH) market has experienced some recent good fortunes rising by over 5% in the past 24 hours. Despite this price gain, the prominent altcoin remains in a downtrend as indicated by its 11.17% loss in the past week.  However, prominent analytics platform Glassnode has discovered an important price level that could offer some short-term support.Investors Boost Accumulation By 300,000 ETH At This Price Region – What Could It Mean?In an X post on March 14, Glassnode provided an intriguing analysis of the ETH market highlighting a potential strong support level. Based on the Cost Basis Distribution (CBD) metric, these analysts believe ETH is likely to hit a major support zone at the $1,886 price level in the case of a further price decline.In the crypto market, CBD represents a crucial on-chain metric that tracks the price levels at which tokens were last sold or bought. When a significant number of coins is acquired within a specific price range, that zone often serves as a support or resistance level.According to Glassnode, Ethereum’s CBD data shows that investors’ supply at $1,886 has grown from 1.6 million ETH to 1.9 million ETH indicating the acquisition of an additional 300,000 ETH when price last reached this level. This development postulates that a significant portion of investors view $1,886 as a crucial price point and are likely to increase their holdings in this region to prevent any further decline thus creating a viable support zone.Glassnode notes that this postulation aligns with insights from its custom capitulation metric design to capture price capitulation events leveraging the use of weighted sell volumes and non-linear economic pain experienced by investors. However, it’s worth noting that the $1,886 price level can only offer short-term support suggesting a likely price capitulation in the presence of overwhelming selling pressure.Ethereum Price Overview At the time of writing, Ethereum trades at $1,924 following a 5% gain on the last day as previously stated. Meanwhile, the market’s daily trading volume is down by 29.29% and valued at $12.91 billion. Interestingly, the Relative Strength Index metric suggests Ethereum could soon enter the oversold region and potentially experience a price reversal.However, ETH bulls are confronted with multiple resistance zones at $2,249, $2,539, and $2,829 if they are to pull off any significant rebound and halt the current downtrend. On the other hand, any decisive price fall below $1,886 could lead to lower levels Such as $1,650 and $1,132.Weiter zum vollständigen Artikel bei NewsBTC Weiter zum vollständigen Artikel bei NewsBTC