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In the weeks since April’s shutdown, Ethereum prices exploded so quickly in the cryptocurrency market that it exceeded $1,800 in the previous month. However, Altcoin failed to end the month’s profit, leaving April with a negative performance for the fourth straight month. According to the latest chain chain data, Ethereum prices appear to be at a critical level of support, which can determine the trajectory of altcoins in the coming weeks.
ETH price is at risk of falling to $1,772
In an article on X platform on May 3, well-known crypto analyst Ali Martinez revealed that Ethereum’s price could be at a critical moment that could determine its short-term future. According to the latest chain data, Altcoin’s risk may drop to around $1,500 if this support level is lost in the next few days.
This chain evaluation of Ethereum prices revolves around the average cost basis for several Ethereum investors. In crypto trading, cost-based analysis determines the ability to base the support or resistance of coins that investors in the region received last time.
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As shown in the above figure, the size of the dots (green and red) indicates that directly corresponds to the number of ether tokens purchased within the price area. The larger the circle, the higher the amount of tokens purchased in and around the price area, and the stronger the resistance or support level.
According to Intotheblock, more than 6.36 million ETH token addresses were purchased in the $1,772 price range (average price of $1,799). As mentioned earlier, high purchasing activities within this price zone result in the formation of major support levels below the current price.
Ethereum prices are expected to rebound when they fall to this level. The rationale behind this expectation is that when the ETH price returns around $1,772, investors at this level and its cost base are likely to defend their position by buying more tokens, thus helping the price stay in the support area.
However, the highlighted chart shows that price levels below the support level of $1,772 significantly reduce investor activity. This suggests that if the $1,772 price is violated, Ethereum’s price could drop to around $1,500 without a break. On the other hand, if this support level remains the same, the price of ETH can be as high as $2,100, as there is no obvious resistance.
Ethereum price at a glance
At the time of writing, the ETH token is worth approximately $1,830, reflecting nearly 1% of the past 24 hours.
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Featured images from Istock, charts for TradingView
