Ethereum Support Levels Below $1,530 Are Very Thin Currently
In a new on X, analyst Ali has discussed what the support and resistance levels of Ethereum are looking like right now. These support and resistance levels aren’t the technical ones, however, but rather ones based on on-chain analysis.
The support and resistance levels here are defined based on the density of investors’ cost bases. The “cost basis” here refers to the average price at which an investor acquires their coins on the blockchain.
The various ETH resistance and support levels according to on-chain data | Source:
In the above graph, the larger the circle for a price range, the more Ethereum addresses’ cost bases lie inside it. As mentioned before, levels that are particularly dense are more likely to show reactions to retests from the spot price. This means that large circles above the price can act as resistance, while those below can provide support.
From the chart, it’s visible that the current Ethereum price range has only modest on-chain support, while the higher levels are pretty dense with cost bases, so a move up would face a potentially large amount of resistance. What’s worse, however, is the fact that the levels below the current range are quite thin, implying that there isn’t much support down there.“Keep a close watch, as a daily close below $1,530 could signal a steep correction ahead for ETH,” warns the analyst.
ETH Price
Ethereum is currently trading around the $1,575 mark, meaning that it isn’t that far from the $1,530 level where support would end.ETH has seen some decline in the last few days | Source: