Ethereum Key Support: Cost Basis Data Points To $1,890 As Make-Or-Break Level

Semilore Faleti

3 months ago

2 mins read

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In line with major losses across the crypto market, Ethereum (ETH) declined by 17.08% in the past week reaching as low as $2,104. While the prominent altcoin has shown some minor gains in the past 12 hours, the general market sentiment remains bearish.

ETH Correction Likely Headed To $1,890 – Here’s Why

The ETH market is currently navigating a strong market correction with several analysts now spotlighting potential key support levels. According to prominent on-chain analytics firm Glassnode, data from the Cost Basis Distribution (CBD) metric indicates Ethereum is poised for a decline to $1,890 which represents its next major accumulation zone.

For context, CBD is used to identify significant levels of an asset’s accumulation or distribution. These identified zones often act as support or resistance and are influential on price actions. Analysts at Glassnodes state that the major ETH accumulation zone below its current price is $1,890 at which investors acquired approximately 1.82 million ETH in August 2023.

Interestingly, a two-year analysis of Ethereum’s CBD shows that some of these investors who accumulated ETH in August 2023 remain active. Notably, a significant number of them increased their cost basis during the crypto market in November 2024 while executing no distribution at range highs – a behavior that signals a strong confidence in long-term price appreciation.

However, it is worth stating that $1,890 is not the immediate support zone for the ETH market. Glassnode states that CBD data also highlights $2,100 as the next support zone if Ethereum’s correction continues.

This support level only holds around 500,000 ETH i.e. significantly lower than the accumulation seen at $1890. Albeit, investors can expect $2,100 to offer some short-term support before ETH experiences a deeper correction to $,1890.

Is ETH Accumulation On Amid Price Dip?

In a further analysis of the Ethereum market, Glassnode also reveals that a six-month perspective on the cost basis trend shows strong investor activity with at cost basis levels far higher than the current market price, particularly around $3,500.

Notably, this cost basis has shown a gradual decline while increasing in concentration. This development indicates that rather than initiating a sell-off, investors are actively absorbing market supply as prices decline in anticipation of long-term gains.

At the time of writing, Ethereum trades at $2,250 following a 3.84% gain in the past day. Meanwhile, its heavy decline over the past week moves its monthly losses to around 30.48%. However, its market activity has increased by 7.74% and is now valued at $29.91 billion.

Featured image from iStock, chart from Tradingview

Semilore Faleti

Semilore Faleti is a cryptocurrency writer specialized in the field of journalism and content creation. While he started out writing on several subjects, Semilore soon found a knack for cracking down on the complexities and intricacies in the intriguing world of blockchains and cryptocurrency.

Semilore is drawn to the efficiency of digital assets in terms of storing, and transferring value. He is a staunch advocate for the adoption of cryptocurrency as he believes it can improve the digitalization and transparency of the existing financial systems.

In two years of active crypto writing, Semilore has covered multiple aspects of the digital asset space including blockchains, decentralized finance (DeFi), staking, non-fungible tokens (NFT), regulations and network upgrades among others.

In his early years, Semilore honed his skills as a content writer, curating educational articles that catered to a wide audience. His pieces were particularly valuable for individuals new to the crypto space, offering insightful explanations that demystified the world of digital currencies.

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Currently at NewsBTC, Semilore is dedicated to reporting the latest news on cryptocurrency price action, on-chain developments and whale activity. He also covers the latest token analysis and price predictions by top market experts thus providing readers with potentially insightful and actionable information.

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In conclusion, Semilore Faleti exemplifies the convergence of expertise, passion, and advocacy in the world of crypto journalism. He is a rare individual whose work in documenting the evolution of cryptocurrency will remain relevant for years to come.

His dedication to demystifying digital assets and advocating for their adoption, combined with his commitment to social justice and political engagement, positions him as a dynamic and influential voice in the industry.

Whether through his meticulous reporting at NewsBTC or his fervent promotion of fairness and equity, Semilore continues to inform, educate, and inspire his audience, striving for a more transparent and inclusive financial future.

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