Ethereum Price Faces Challenges Staying Above $2,500 — Keep An Eye on This Support Level
Reasons for Confidence
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The performance of Ethereum in May has been exceptional, demonstrating over a 35% increase in just two weeks. Following a strong push towards the $2,700 threshold on May 13, the altcoin has had difficulty maintaining this upward trend in recent days.
Throughout the last week, ETH managed to remain above the $2,500 level but faced obstacles in doing so as the price retreated on May 15. Unfortunately, these challenges intensified over the weekend, leading to a drop below the $2,500 mark by the week’s conclusion.
Upcoming Support Level for ETH Price
Well-known crypto analyst Ali Martinez utilized the social media platform X to present a compelling on-chain perspective regarding Ethereum’s price and its recent struggle to gain bullish momentum. After ETH fell below the $2,500 mark, this analyst pinpointed the altcoin’s next major support zone.
Related Insights
This analysis centers on the average cost basis of multiple Ethereum investors. A cost-basis assessment gauges how effectively a specific price point serves as a support or resistance level by examining the total quantity of tokens acquired by investors at that range.
The chart illustrates that the size of the circles correlates with the volume of ETH purchases at each price range, indicating the importance of that area as either support or resistance.
Essentially, larger dots indicate a higher amount of tokens bought, translating to stronger support or resistance levels; green dots signify support (typically below the current price) while red dots represent resistance (generally above the asset’s price).
Data from Sentora reveals that Ethereum has significant support around the $2,354 – $2,430 range, where 2.64 million addresses acquired 63.9 million tokens (valued at $153.04 billion, with an average price of $2,395).
Martinez emphasized that this price range could act as a protective barrier for ETH, as investors with purchase bases around this level may buy additional tokens if prices descend toward $2,400. This fresh buying interest could mitigate downward pressure, thus supporting the Ethereum price.
The chart indicates a clear path ahead for Ethereum without substantial resistance anticipated. Nonetheless, the altcoin must maintain a position above $2,400 to avoid a potential drop to as low as $2,200.
Ethereum Price Overview
At this moment, ETH is trading around $2,480, reflecting a 0.7% increase in the last 24 hours. Data from CoinGecko shows that the altcoin has decreased by nearly 4% over the week.
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