On chain data indicates that Ethereum's closing price below $1530 may lead to a significant decline in cryptocurrency.Currently, Ethereum's support level is very weak below $1530In a new post on X, analyst Ali discusses the current support and resistance levels of Ethereum
On chain data indicates that Ethereum's closing price below $1530 may lead to a significant decline in cryptocurrency.
Currently, Ethereum's support level is very weak below $1530
In a new post on X, analyst Ali discusses the current support and resistance levels of Ethereum. However, these support and resistance levels are not at the technical level, but based on the level of on chain analysis.
The support and resistance levels here are defined based on the density of the investor's cost base. The 'cost basis' here refers to the average price at which investors obtain tokens on the blockchain.
Whenever spot prices interact with the cost base of holders, they may be more likely to take action. How investors react depends on the surrounding price trends.
If the price of Bitcoin had been on the cost basis of the holders earlier (meaning they were in a loss making state), the return of assets to their original level may have tempted investors to sell because they may be worried that their Bitcoin will fall back into losses, so exiting at breakeven seems like a better option.
On the other hand, if the price retests the cost base from above, investors may decide to accumulate more funds, believing that if they can profit from early purchases at the same level, they may be able to do more at once.
Of course, not all investors think the same, but if there is a price range for purchasing large amounts of tokens, such behavior may become visible on an undeniable scale.
The following figure shows the current situation of various Ethereum price ranges based on their hosting cost base density:
In the above figure, the larger the circle of the price range, the more cost base the Ethereum address within it has. As mentioned earlier, particularly dense levels are more likely to show a reaction to retesting spot prices. This means that the large circle above the price can act as resistance, while the large circle below can provide support.
From the chart, it can be seen that the current Ethereum price range only has moderate on chain support, while the higher level of cost base is quite intensive, so there will be potential huge resistance to rising.
However, even worse, the level below the current range is quite weak, which means there is not much support there.
Please pay close attention, as daily closing prices below $1530 may indicate a significant adjustment in ETH in the future, "analysts warned.
Ethereum Price
The current trading price of Ethereum is around $1575, which means it is not far from the $1530 level where support ends.
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