Ethereum Cost Basis Data Signals Strong Support At $1,886 – Details

ethereum-cost-basis-data-signals-strong-support-at-$1,886-–-details
Ethereum

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The Ethereum (ETH) market has experienced some recent good fortunes rising by over 5% in the past 24 hours. Despite this price gain, the prominent altcoin remains in a downtrend as indicated by its 11.17% loss in the past week.  However, prominent analytics platform Glassnode has discovered an important price level that could offer some short-term support.

Investors Boost Accumulation By 300,000 ETH At This Price Region – What Could It Mean?

In an X post on March 14, Glassnode provided an intriguing analysis of the ETH market highlighting a potential strong support level. Based on the Cost Basis Distribution (CBD) metric, these analysts believe ETH is likely to hit a major support zone at the $1,886 price level in the case of a further price decline.

In the crypto market, CBD represents a crucial on-chain metric that tracks the price levels at which tokens were last sold or bought. When a significant number of coins is acquired within a specific price range, that zone often serves as a support or resistance level.

Image
Source: @glassnode on X

According to Glassnode, Ethereum’s CBD data shows that investors’ supply at $1,886 has grown from 1.6 million ETH to 1.9 million ETH indicating the acquisition of an additional 300,000 ETH when price last reached this level. This development postulates that a significant portion of investors view $1,886 as a crucial price point and are likely to increase their holdings in this region to prevent any further decline thus creating a viable support zone.

Glassnode notes that this postulation aligns with insights from its custom capitulation metric design to capture price capitulation events leveraging the use of weighted sell volumes and non-linear economic pain experienced by investors. However, it’s worth noting that the $1,886 price level can only offer short-term support suggesting a likely price capitulation in the presence of overwhelming selling pressure.

Ethereum Price Overview 

At the time of writing, Ethereum trades at $1,924 following a 5% gain on the last day as previously stated. Meanwhile, the market’s daily trading volume is down by 29.29% and valued at $12.91 billion. Interestingly, the Relative Strength Index metric suggests Ethereum could soon enter the oversold region and potentially experience a price reversal.

However, ETH bulls are confronted with multiple resistance zones at $2,249, $2,539, and $2,829 if they are to pull off any significant rebound and halt the current downtrend. On the other hand, any decisive price fall below $1,886 could lead to lower levels Such as $1,650 and $1,132.

Ethereum
ETH trading at $1,924 on the daily chart | Source: ETHUSDT chart on Tradingview.com

Featured image from iStock, chart from Tradingview

Semilore Faleti

Semilore Faleti is a cryptocurrency writer specialized in the field of journalism and content creation. While he started out writing on several subjects, Semilore soon found a knack for cracking down on the complexities and intricacies in the intriguing world of blockchains and cryptocurrency.

Semilore is drawn to the efficiency of digital assets in terms of storing, and transferring value. He is a staunch advocate for the adoption of cryptocurrency as he believes it can improve the digitalization and transparency of the existing financial systems.

In two years of active crypto writing, Semilore has covered multiple aspects of the digital asset space including blockchains, decentralized finance (DeFi), staking, non-fungible tokens (NFT), regulations and network upgrades among others.

In his early years, Semilore honed his skills as a content writer, curating educational articles that catered to a wide audience. His pieces were particularly valuable for individuals new to the crypto space, offering insightful explanations that demystified the world of digital currencies.

Semilore also curated pieces for veteran crypto users ensuring they were up to date with the latest blockchains, decentralized applications and network updates. This foundation in educational writing has continued to inform his work, ensuring that his current work remains accessible, accurate and informative.

Currently at NewsBTC, Semilore is dedicated to reporting the latest news on cryptocurrency price action, on-chain developments and whale activity. He also covers the latest token analysis and price predictions by top market experts thus providing readers with potentially insightful and actionable information.

Through his meticulous research and engaging writing style, Semilore strives to establish himself as a trusted source in the crypto journalism field to inform and educate his audience on the latest trends and developments in the rapidly evolving world of digital assets.

Outside his work, Semilore possesses other passions like all individuals. He is a big music fan with an interest in almost every genre. He can be described as a “music nomad” always ready to listen to new artists and explore new trends.

Semilore Faleti is also a strong advocate for social justice, preaching fairness, inclusivity, and equity. He actively promotes the engagement of issues centred around systemic inequalities and all forms of discrimination.

He also promotes political participation by all persons at all levels. He believes active contribution to governmental systems and policies is the fastest and most effective way to bring about permanent positive change in any society.

In conclusion, Semilore Faleti exemplifies the convergence of expertise, passion, and advocacy in the world of crypto journalism. He is a rare individual whose work in documenting the evolution of cryptocurrency will remain relevant for years to come.

His dedication to demystifying digital assets and advocating for their adoption, combined with his commitment to social justice and political engagement, positions him as a dynamic and influential voice in the industry.

Whether through his meticulous reporting at NewsBTC or his fervent promotion of fairness and equity, Semilore continues to inform, educate, and inspire his audience, striving for a more transparent and inclusive financial future.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related Posts

Leave a Reply