Ethereum continues to show signs of recovery, although the price remains volatile. Analysts highlight key support and resistance levels that might play a significant role in the asset's future price movement.
The Glassnode Cost Basis Distribution Metric for Ethereum
The CBD metric is used to identify key levels of an asset’s accumulation or distribution. Glassnode analysts noted that investors accumulated 500,000 ETH coins at around $2,200, then redistributed at $2,500. The major resistance zone for a price increase is $2,800, holding 800,000 ETH.
Proof of Ethereum Undervalued Outlook
Ethereum is approaching the undervalued zone based on the MVRV ratio, which compares the asset's current market value with its realized value. A fall below 1 signals a potential buying opportunity near the average purchase price, yet does not guarantee a price rally.
Ethereum Price Expectations
At a current trading price of $2,213, Ethereum shows a 3.4% gain over the day amid a general weekly decline. Lower trading volumes suggest reduced activity. Technical indicators predict further downward movement, with potential tests of $1,250 if declines continue. However, some analysts forecast a possible ETH rally to $6,000 over the year.
Ethereum is in a zone of uncertainty, balancing between potential declines and recovery opportunities. Investors are keenly observing technical indicators and the $2,800 resistance level, which may signal future market direction.
