The Ethereum (ETH) price continues to face significant resistance around $2,800, with new on-chain data revealing why the second-largest cryptocurrency struggles to maintain momentum above $2,700. Recent analysis from blockchain intelligence firm Glassnode provides crucial insights into the current price dynamics.
Key Takeaways:
- Ethereum price repeatedly rejected above $2,700
- Cost Basis Distribution (CBD) metric shows heavy investor concentration at $2,800
- Next major support level identified at $2,380
This analysis comes as Bitcoin and Ethereum correlation reaches record lows, suggesting unique market dynamics are affecting ETH’s price action.
Understanding the $2,800 Resistance
Glassnode’s analysis reveals a significant cluster of investor cost basis distribution around the $2,800 level. This concentration indicates many investors acquired their ETH positions in this price range, creating a natural resistance level as these holders look to break even on their investments.
Technical Analysis and Support Levels
According to prominent crypto analyst Ali Martinez, if the current resistance persists, ETH could find its next major support level around $2,380. This aligns with previous technical analysis showing key support zones.
FAQ: Ethereum Price Action
Why can’t Ethereum break above $2,800?
The concentration of investor positions at this level creates natural selling pressure as previously underwater investors seek to exit at breakeven.
What needs to happen for ETH to break resistance?
Buy-side pressure must significantly outweigh the selling pressure from existing holders looking to exit their positions.
Where is the next support level?
Technical analysis indicates $2,380 as the next major support level if current prices fail to hold.
Market Outlook
While the immediate price action appears constrained, the broader market context suggests potential for upward movement if buying pressure can overcome the current resistance zone. Traders should monitor the Cost Basis Distribution metric for changes in investor behavior patterns.
