Ethereum Faces Selling Pressure Near $1.8K

Ethereum ($ETH) is navigating a challenging price period. Recent data from Glassnode highlights potential weaknesses. Selling pressure appears significant near current levels. Price support seems limited according to on-chain analysis. Glassnode discussed this market activity recently. They pointed towards a potential sell-off risk.

Glassnode’s Cost Basis Distribution Analysis

Glassnode’s analysis focuses on ETH Cost Basis Distribution. This metric shows prices where investors acquired ETH. It reveals crucial insights into holder behavior. The data indicates limited support near $1,800. Many investors who bought ETH around this price failed to re-engage. This means they didn’t add to positions recently. This lack of buying activity contributed to failure. Ethereum couldn’t hold the $1,800 level during the recent sell-off. Some investors who bought higher are selling now. They are realizing losses.

Further analysis shows shifts in holdings. Clusters of ETH bought between $2,000-$2,050 vanished. This occurred around March 28th. This suggests holders at these levels capitulated. They sold during the market dip. Some investors with higher cost bases are averaging down. They are buying more ETH at lower current prices. However, this buying activity seems limited.

Identifying Critical Support Levels

Wider accumulation appears muted at current levels. The analysis identifies a key support zone. The most significant support lies near $1,537. Approximately 994,000 ETH were acquired at this level previously. This large volume makes it a noteworthy area. Potential purchasing interest could emerge here. This might happen if a downward trend continues. This level represents a strong historical buying point.

Factors Influencing Ethereum’s Price

Glassnode suggests several factors influence ETH’s price. Macroeconomic conditions play a significant role. Overall investor sentiment is also crucial. A rebound above the $1,800 resistance level is key. This could restore confidence among market participants. Conversely, failure to hold the $1,537 support is bearish. It might trigger another wave of selling pressure. External factors like regulations also impact ETH.

On-Chain Activity vs. Price Action

Other data points add context. Despite price struggles, Ethereum’s network saw rebounds. Price climbed 1.56% to $1,840 recently. Trading volume surged over 53% ($15.63B). However, on-chain active addresses remain weak. CryptoQuant data shows declining activity since early 2024. Active addresses hover around 300,000 daily. User interaction seems to decrease as price rises. This indicates caution and reduced participation. Long-term growth may require renewed network activity. Sustained high usage fees are also important.

Technical Indicators Offer Mixed Signals

Short-term technical indicators suggest recovery potential. The 4-hour RSI rose from oversold levels. It reached 43.15, still below neutral 50. The MACD showed a bullish crossover signal. However, longer-term trends remain cautious. The price is still below key moving averages. Holding above $1,800 is the first challenge. Resistance lies between $1,900-$2,000.

Ethereum’s current situation is complex. Glassnode’s cost basis analysis highlights selling pressure. Weak support exists near $1,800. The $1,537 level is a crucial potential support zone. While short-term technicals hint at recovery, underlying on-chain activity remains subdued. Market participants should monitor these levels closely.