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The Ethereum price performance in the month of May has been nothing short of outstanding, surging by more than 35% in the past two weeks. After making a strong run toward the $2,700 mark on Tuesday, May 13, the altcoin’s price has struggled to build on its momentum over the past few days.
The price of ETH did manage to stay above the $2,500 mark over the past week, bouncing back from the psychological level on Thursday, May 15. However, the recent struggles seem to have compounded over the weekend, with the Ethereum price losing the $2,500 level to end the week.
The Next Support Cushion For ETH Price
Prominent crypto analyst Ali Martinez took to the social media platform X to share an interesting on-chain outlook on the price of Ethereum and its latest lack of bullish momentum. Following the dip of ETH beneath the $2,500 mark, the online pundit has identified the altcoin’s next significant support level.
This evaluation revolves around the average cost basis of several Ethereum investors. Cost-basis analysis basically measures the ability of a price level to act as support or resistance — based on the total amount of coins last purchased by investors at this level.
As shown in the chart above, the size of the circles directly corresponds with the quantity of ETH tokens bought within each price zone and the region’s significance as support or resistance.
In essence, the bigger the dot, the higher the number of tokens, and the stronger the support or resistance; the green dots are support (as they are usually below the current price), while the red dots represent resistance (as they are above the asset price).
Data provided by Sentora (formerly IntoTheBlock) shows that the Ethereum price has key support around the $2,354 – $2,430 zone, where 2.64 million addresses purchased 63.9 million tokens (worth $153.04 billion at an average price of $2,395).
As Martinez highlighted, this price bracket would serve as an on-chain cushion for the ETH price, as investors with their cost bases around the level would likely defend their positions by buying more tokens if the price falls toward $2,400. The fresh buying pressure around this price region would help counter the downward pressure, thereby keeping the Ethereum price afloat.
The highlighted chart shows that it is all clear blue skies for the price of Ethereum, with no significant resistance lying ahead. However, the altcoin will need to hold above the $2,400 level, or it risks falling to as low as $2,200.
Ethereum Price At A Glance
As of this writing, the price of ETH stands at around $2,480, reflecting a 0.7% increase in the past 24 hours. According to data from CoinGecko, the altcoin is down by nearly 4% on the weekly timeframe.
Featured image from iStock, chart from TradingView
Opeyemi is a proficient writer and enthusiast in the exciting and unique cryptocurrency realm. While the digital asset industry was not his first choice, he has remained absolutely drawn since making a foray into the space over two years. Now, Opeyemi takes pride in creating unique pieces unraveling the complexities of blockchain technology and sharing insights on the latest trends in the world of cryptocurrencies.
Opeyemi savors his attraction to the crypto market, which explains why he spends the better parts of his day looking through different price charts. “Looking” is a rather simple way to describe analyzing and interpreting various price patterns and chart formations. However, it appears that is not Opeyemi’s favorite part – in fact, far from it.
Being able to connect what happens on a price chart to on-chain movements and blockchain activities is what keeps Opeyemi ticking. “This emphasizes the intricacies of blockchain technology and the cryptocurrency market,” he would say. Most importantly, Opeyemi thinks of any market insights as the gospel, while recognizing that he is only a messenger.
When he is not clicking away at his keyboard, Opeyemi is most definitely listening to music, playing games, reading a book, or scrolling through X. He likes to think he is not loyal to a particular genre of music, which can be true on many days. However, the fast-rising Afrobeats genre is a staple in Opeyemi’s Spotify Daily Mix.
Meanwhile, Opeyemi is a voracious reader who enjoys a wide category of books – ranging from science fiction, fantasy, and historical, to even romance. He believes that authors like George R. R. Martin and J. K.
Rowling are the greatest of all time when it comes to putting pen to paper. Opeyemi believes his reading of the Harry Potter series twice is proof of that.
Indeed, Opeyemi enjoys spending most of his time within the four walls of his home. However, he also sometimes finds solace in the company of his friends at a bar, a restaurant, or even on a stroll. In essence, Opeyemi’s ambivert (haha! been searching for an opportunity to use the word to describe myself) nature makes him a social chameleon who is able to quickly adapt to different settings.
Opeyemi recognizes the need to constantly develop oneself in order to stay afloat in a competitive and ever-evolving market like crypto. For this reason, he is always in learning mode, ready to pick up the slightest lesson from every situation. Opeyemi is efficient and likes to deliver all that is required of him in time – he believes that “whatever is worth doing at all is worth doing well.” Hence, you will always find him striving to be better.
Ultimately, Opeyemi is a good writer and an even better person who is trying to shed light on an exciting world phenomenon – cryptocurrency. He goes to bed every day with a smile of satisfaction on his face, knowing that he has done his bit of the holy assignment – spreading the crypto gospel to the rest of the world.
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