Over the last week, Ethereum (ETH) has taken a significant hit, plummeting by 17.08% and dipping to a low of $2,104 amid broader crypto market turmoil. Although ETH has shown slight recovery in the last half-day, skepticism around its immediate future lingers.
### ETH’s Potential Path to $1,890
Currently, Ethereum’s market is entangled in a noticeable correction phase, with experts eyeing critical support levels. Data from Glassnode, an authoritative on-chain analytics firm, highlights the Cost Basis Distribution (CBD) metric as a key indicator. This data suggests a potential slide to $1,890, identifying it as a crucial accumulation zone.
To understand, CBD pinpoints significant accumulation or distribution levels of an asset, often serving as support or resistance affecting price movements. Analysts at Glassnode highlight that $1,890 represents a substantial ETH accumulation region from August 2023, where roughly 1.82 million ETH were gathered.
Interestingly, a two-year examination of Ethereum’s CBD unfolds that many investors from August 2023 are still holding steadfast. Even in November 2024, during another market swing, these investors bolstered their holdings, abstaining from selling at peak prices—a behavior implying a steadfast belief in future gains.
Despite this, $1,890 isn’t immediately on the horizon as Ethereum’s next support checkpoint. According to Glassnode, $2,100 is the likely interim support level should the downward trend persist. However, this zone holds a much smaller ETH stash—around 500,000—compared to the more substantial accumulation at $1,890. Thus, while $2,100 might lend temporary support, a deeper correction towards $1,890 could be on the cards.
### Is Accumulation Underway Amidst Price Slump?
Digging deeper into Ethereum’s current standing, Glassnode’s six-month review of cost basis trends uncovers robust investor activity above current market levels, particularly around $3,500. This cost basis has gently declined while becoming more concentrated, suggesting that instead of rushing to sell, investors are absorbing the available supply as prices wane, aiming for long-haul returns.
As of now, Ethereum is trading at $2,250, capturing a 3.84% rise in the last 24 hours. Nonetheless, its significant drop last week lowers its monthly performance to a 30.48% loss. Despite this rocky terrain, trading activity has surged by 7.74%, pegging its market cap at $29.91 billion.
