Ethereum’s Successful Rebound at On-Chain Support Zone
On-chain data reveals that Ethereum has experienced a rebound at a significant support zone, indicating positive prospects for the cryptocurrency’s upward movement.
The Importance of On-Chain Support and Resistance
When analyzing on-chain data, it is crucial to consider the number of investors who purchased their coins within a specific price range. This is because these holders are more likely to react when the price retests their acquisition price, which can significantly impact their profit-loss situation.
If a large number of investors share the same cost basis within a tight range, the asset’s retest of that range can lead to a substantial market reaction.
An analyst named Ali recently shared a chart that demonstrated Ethereum’s price ranges and the number of addresses that acquired coins within those ranges:
Ethereum’s Path to Higher Levels
According to the chart, the price ranges leading up to Ethereum’s all-time high have relatively few investors. This suggests that ETH should face minimal resistance as it moves through these levels, thanks to the strong support base below.
Current ETH Price Movement
Following its rebound at the support zone, Ethereum has surged towards the $2,300 level.
Hot Take: Ethereum Gains Momentum with Strong On-Chain Support
On-chain data analysis reveals that Ethereum has found support at a significant level, indicating potential growth for the cryptocurrency. With a strong support base and relatively thin price ranges ahead, ETH appears well-positioned to overcome any resistance as it continues its upward trajectory.
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