Will Ethereum Drop to $1,800 After Breaking Below the $2,300 Support?Analyst AliMartinez recently posted a blog on X platform using data from IntoTheBlock to analyze Ethereum's current investor cost basis distribution. He pointed out that Ethereum could decline to $1,800 if it breaks below the $2,300 - $2,359 support level
Will Ethereum Drop to $1,800 After Breaking Below the $2,300 Support?
Analyst AliMartinez recently posted a blog on X platform using data from IntoTheBlock to analyze Ethereum's current investor cost basis distribution. He pointed out that Ethereum could decline to $1,800 if it breaks below the $2,300 - $2,359 support level.
The analyst noted that there is a large concentration of investor cost basis within the $2,292 to $2,359 range, with nearly 52.3 million ETH acquired by 1.9 million addresses in this range. This means that if Ethereum falls below this range, these investors might be forced to sell, leading to further price declines.
According to IntoTheBlock, the range is a significant demand zone because a large number of investors bought at these levels. However, the range below this demand zone only carries a limited amount of investor cost basis, so they might not be able to stop the asset from falling further.
AliMartinez believes that if Ethereum breaks below the $2,292 to $2,359 support level, there could be several scenarios:
- Investors may profit-take before a retest of this support level, creating a buy reaction in the market as they anticipate the asset to rise again in the future.
- As Ethereum is currently retesting the range, it could find support and bounce back.
- However, if the range is broken, the cryptocurrency's price could be in danger, as the range below this demand zone only carries a limited amount of investor cost basis, and may not be able to stop the asset from falling further.
AliMartinez stated, "If this demand zone is broken, we could see selling pressure push ETH towards $1,800." A pullback to this level from the current price would represent a drop of over 21% for the token.
Currently, Ethereum's price has broken below $2,300 but has yet to break below the $2,292 to $2,359 support level. However, if the price falls below this support, Ethereum may face further downside risk.
It's important to note that this is just one analyst's opinion and does not represent the views of all investors. Investors should conduct their own research and invest according to their own risk tolerance before making any investment decisions.
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