Blockchain company explains why Ethereum price cannot be held for more than $2,700

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Blockchain company explains why Ethereum price cannot be held for more than ,700

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There is no doubt that in recent weeks, Ethereum prices are in a better place than the first quarter. However, the “King of Altcoins” seems to be trapped in a loop involving repeated pushbacks at a specific price level.

After riding this week’s bullish momentum, Ethereum’s price faces a huge downward pressure of over $2,700 before crashing to where the week began. Here are the fundamental factors for the ETH fight above $2,700.

What happened to ETH priced above $2,700?

In a May 24 post on X, blockchain analytics firm GlassNode has shared new chain insights on the Ethereum price movement over the past few days. According to the crypto platform, the next most important level of ETH price is around $2,800.

The reason behind this chain observation is the cost-based distribution of ETH supply. The relevant measure here is Cost Base Distribution (CBD), which reflects the total Ethereum supply held by the address on average cost base over a specific price range.

Ethereum Price

Source: @glassnode on X

As shown in the figure above, the CBD indicator uses a heat map (on the vertical axis) with a fixed price bracket level (on the vertical axis) for a given period (on the horizontal axis). This indicator provides insights into the shift in investor cost-based trends over a specific period.

GlassNode points out that at the $2,800 Ethereum price level, there is a large amount of investor cost-based allocation. Basically, this means several investors have obtained coins near this price area.

Further, GlassNode explains that Ethereum price may see huge seller pressure on selling as it approaches the CBD cluster for about $2,800. This phenomenon is based on several former underwater investor tendencies in an attempt to unload their assets near break-even.

The revelation on this chain explains why Ethereum prices have rejected over $2,700 in the past few weeks. In order for the second largest cryptocurrency to exceed this supply barrier, demand for ETH around the CBD cluster must exceed sales pressure.

However, if Ethereum prices are under sales pressure of around $2,800, it could drop to the next support level. As top analyst Ali Martinez highlighted on social media platform X, the next major support mat at ETH price is around $2,380.

Ethereum price at a glance

At the time of writing, the Ethereum token is worth about $2,0, reflecting a drop of less than 1% over the past 24 hours.

The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingView

Featured images from Istock, charts for TradingView

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