The analysis of the current market situation for Ethereum reveals key support levels that may influence its future dynamics.
Key Support Levels for Ethereum
Analysis shows that Ethereum is facing strong resistance after peaking near $4,000 in late July. On-chain data from the Ethereum Cost Basis Distribution Heatmap indicates that critical support levels are concentrated around $2,924 and $2,750. In the range of $2,911 to $2,924, more than 608,000 ETH is held, while the stronger zone lies between $2,744 and $2,757, where over 1.94 million ETH has been accumulated.
Comparison with Previous Cycles
Despite the current bearish trend, some analysts note that the present ETH dynamics resemble Bitcoin's market structure in 2020. Specifically, the Relative Strength Index (RSI) of ETH shows similar behavior, having touched the 60 level three times, which could indicate a potential reversal. Such scenarios have been observed before significant price increases in cryptocurrencies.
Growth Prospects for Ethereum
Analysts predict that if Ethereum's price breaks out from its three-year falling wedge, it could lead to a jump toward $7,500 to $8,000. The current increase in active Ethereum addresses also suggests potential growth, which hasn't been seen since previous peaks.
The current state of Ethereum highlights that key support levels and active address dynamics could impact future price movements. The analysis continues to emphasize the importance of understanding these levels for investors.
