The Ethereum price has been one of the best performers in the cryptocurrency market in the third quarter, reaching a new all-time high at the end of August. However, the second-largest cryptocurrency has struggled to build on this record-setting momentum in September.
This indicator looks at a price level’s capacity to act as an on-chain support or resistance zone, which typically depends on the number of investors with their cost basis at the given level. An investor’s cost basis refers to the original price at which they bought a crypto asset (Ether, in this scenario).
According to data highlighted by Martinez, the next major support levels for the Ethereum price lie around $3,515, $3,020, and $2,772. As observed in the chart below, if the price of ETH doesn’t have a sustained close above $4,000, its next immediate support cushion is around $,3,515, where nearly 1.39 billion coins were purchased.
As of this writing, the price of ETH stands at around $3,994, reflecting no significant movement in the past 24 hours. While the largest altcoin by market cap seems to be hanging on to the major $4,000 level, its performance over the past week is still quite worrying. According to data from CoinGecko, the Ethereum price is down by more than 10% in the last seven days.
Featured image from Shutterstock, chart from TradingView
