A cryptocurrency analyst explained how the around $2,000 range has been the main Ethereum support base for years, making it not too late to buy ETH right now.
43.8 million Ethereum was acquired between $1,900 and $2,100.
new post At X, analyst Ali discussed why Ethereum is still worth investing in at this point. The analyst cited data from market intelligence platform IntoTheBlock to illustrate this, citing the distribution of the cryptocurrency’s on-chain acquisitions.
The data for the cost basis distribution of the asset | Source: @ali_charts on X
In the graph above, the dots represent the number of investors or addresses that purchased coins within that price range. Naturally, the larger the dot, the higher the density of holders purchased within that range.
Of all the price ranges ETH has visited in its entire history, the $1,900-$2,100 price range appears to host the most holder’s cost basis.
ETH has recently been consolidating within this range and as trading is taking place inside, investors have slowly been gaining cost basis there which is why the range is now significantly inflated.
Now, what does this range have to do with Ethereum? To understand this, you first need to know how investor psychology works. For any investor, the cost basis is a certain price level. This is because the profit-loss situation may be reversed when the spot price of the asset is retested.
For this reason, holders may be more likely to make some kind of move when this retest is conducted. If an investor has made a profit before, he or she may buy more in the expectation that the same level will make a profit again.
A small number of investors making such purchases will not move the market at all, but if a large number of investors purchase within the same narrow range, that level will eventually provide support for Ethereum when it retests. It may be possible.
Buyers between $1900 and $2100 are clearly taking profits, so this range, which hosts a cost base of 5.85 million addresses that have acquired 43.8 million ETH, could see a big buying response if ETH falls. “This range could be an important level of support in the coming years,” Ali said. So, it’s not too late to join ETH!”
In another post yesterday, the same analyst posted a weekly chart of Ethereum, noting that if ETH can secure a sustained candle above $2,150, the asset could see an interesting upward trend.
ETH may be breaking out of the triangle | Source: @ali_charts on X
As seen in the chart, ETH weekly price may break above the ascending triangle pattern. “Do you see the target? We could see ETH marching towards $2,600 and even soaring to $3,500!” Ali says:
ETH price
Ethereum has enjoyed renewed bullish momentum over the past few days and is currently above the $2,200 level.
Looks like the price of the asset has been going up recently | Source: ETHUSD on TradingView
Featured image by Bastian Riccardi on Unsplash.com, chart by TradingView.com, IntoTheBlock.com