Ethereum Price Key Resistance Level To Watch As Per Cost Basis Distribution 

Ethereum price has been down 2.56% over the past week, aligning with major losses across the crypto market. However, the leading altcoin has shown signs of recovery, as its price recently spiked over 3% within the last 24 hours.

Analysts have identified key support levels amid the ongoing dynamics, as indicated in Glassnode’s Ethereum Cost Basis Distribution (CBD) metric.

The Glassnode CBD Metric for Ethereum

The CBD metric is used to identify key levels of an asset’s accumulation or distribution. These identified zones often act as support or resistance and influence price actions.

Glassnode noted that Ethereum investors accumulated 500,000 ETH coins at approximately $2,200. However, these investors quickly redistributed these coins when the price moved to $2,500. It is worth noting that $2,500 is not the immediate resistance zone for the ETH market.

Glassnode states that CBD data highlights $2,800 as the first significant resistance for Ethereum to move higher. This support level holds around 800,000 ETH, substantially higher than the accumulation seen at $2,200.

If ETH breaks out from this level, it could accelerate toward the psychological price of $3,000. However, investors can expect short-term correction before ETH moves toward $2,800.

Meanwhile, CBD has shown a gradual decline while concentration is increasing. This development suggests investors actively absorb market supply as prices decline in anticipation of long-term gains.

Proof of Ethereum Undervalued Outlook

ETH is now touching the undervalued zone based on the Market Value to Realized Value (MVRV) ratio. This means the current market value was underpriced compared to the whales’ higher realized value retained by whales.

The MVRV ratio offers insights into whether an asset is overvalued or undervalued. It is a metric used to compare an asset’s current market value with its realized value.

CryptoQuant noted that the MVRV ratio has fallen below 1, giving an underpriced signal.

Notably, MVRV values below 1 mean a chance to buy at levels close to the average purchase price for both retail and institutional buyers.

However, accumulating at this level does not guarantee a rally. There are also bearish predictions for more ETH capitulations. Overall, the current values indicate ETH may become underpriced compared to previous cycles.

Ethereum Price Expectations

ETH price trades at $2,213 when writing, following a 3.4% gain in the past day. Meanwhile, its sharp decline over the past week moves its monthly losses to around 19.5%. Also, the daily trading volume decreased by 33.7% and is now valued at $24.5 billion, suggesting reduced activity.

Technical indicators predict more downward price movement for Ethereum, strengthening the bearish investor trends. Notably, the four-hour chart shows lowering trend lines that create a falling wedge pattern.

Additionally, the Awesome Oscillator (AO) is showing negative, demonstrating the continuous bearish market direction. Ethereum has also fallen from its parallel channel, with massive breakout hopes fading.

Commenting on the altcoin’s latest movement, analyst Ali Martinez said Ethereum is approaching critical price levels. The analyst added that Ethereum’s drop below $2,114 puts the asset at risk of testing $1,250 soon.

Nevertheless, Ethereum could see a bullish reversal if AO turns positive, signaling an emerging change in momentum. Meanwhile, many analysts believe ETH could rally to $6,000 this year.