Ethereum prices have been under strong bearish pressure over the past few weeks, reflecting the fragile state of the crypto market overall. The altcoin has lost nearly 20% of its value over the past week and has been free-falling through the psychological $3,000 level since Thursday, January 29th.
There are still signs of further downside risk in the market, so it is unclear how far Ethereum price will fall given the current bearish setup. However, the latest on-chain data has provided insight into the next significant level for the second-largest cryptocurrency.
Next support for ETH will be at $2,475: Glassnode
In a recent post on the X Platform, crypto analyst Ali Martinez identified the following three on-chain support levels for Ethereum price: This on-chain assessment revolves around the UTXO Realized Price Distribution (URPD) indicator, which helps investors pinpoint strong resistance and support levels based on their cost base.
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For context, an investor’s cost basis refers to the actual price at which they purchased a particular cryptocurrency (Ethereum in this scenario). Whether a price level acts as an on-chain support or resistance zone usually depends on the number of investors with cost basis at a particular level.
As we reasoned earlier, the UTXO realized price distribution tracks the amount of a given cryptocurrency acquired at a given price level. Currently, any price level below the current spot price where significant trading activity is taking place is considered a major support zone, as shown in the chart below.
The reason behind this prediction is that investors with a cost base around these price levels are likely to double down on their positions and buy more coins. Therefore, this increase in buying activity will provide a buffer to sustain Ethereum’s price and potentially rebound.
Highlighting data from Glassnode, Martinez identified the $2,623, $2,475, and $1,881 levels as the next important support zones for Ethereum price after losing the $2,772 mark. However, following the latest decline over the weekend, the altcoin price also appears to have lost the support at $2,623 and $2,475.
Ethereum price overview
As of this writing, the price of ETH is around $2,410, reflecting a decline of over 10% in the past 24 hours. Due to this recent decline, the altcoin’s price appears to be hovering around a support cushion around $2,475.
If ETH remains below this support level, investors could see Ethereum price fall to $1,881. A decline of this magnitude would represent a 25% decline from the current price point and a correction of more than 60% from the cycle high.
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Featured image from iStock, chart from TradingView
