A crypto analyst has explained how the range around $2,000 could become a major support base for ethereum for years, so it's not too late to buy eth right now.
43.8 million ethereum were purchased between $1,900 and $2,100
in a new mail Over at X, analyst Ali has discussed why it might still be worth getting into ethereum right now. The analyst has cited data from market intelligence platform IntoTheBlock to explain this, referring to the cryptocurrency's on-chain acquisition distribution.
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/12/Crypto-Analyst-Says-It39s-Not-Too-Late-to-Buy-Ethereum.jpeg" alt="ethereum On-Chain Support and Resistance” width=”2348″ height=”850″ loading=”lazy”/>
The data for the cost basis distribution of the asset | Source: @ali_charts on X
In the chart above, the dots represent the number of investors or addresses that purchased their coins within the corresponding price range. Naturally, the larger the point size, the higher the density of holders who bought within the range.
It seems that of all the price ranges that eth has visited in its entire history, the $1,900 to $2,100 range hosts the cost base of the largest number of holders.
eth was recently consolidating within this range and as transactions were made within it, investors slowly gained their cost base there, which is why the range has now widened so much.
Now, what relevance does this range have for ethereum? To understand this, you first have to know how investor psychology works. For any investor, their cost basis is a particular price level, as their profit and loss situation can change when the asset's spot price retests it.
For this reason, the holder is more likely to show some type of movement when this retest is performed. If the investor had last made profits, he could expect the same level to become profitable again, so he could simply buy more.
A few investors making these types of purchases won't move the market at all, but if a large number of investors bought within the same tight range, the levels could end up providing support for ethereum should it retest. .
Buyers of $1,900 to $2,100 are obviously profiting, so this range, which houses the cost base of 5.85 million addresses that acquired 43.8 million eth there, could show a major buying reaction if eth falls towards he. Ali explains that “this range could become a significant support level in the coming years. So it's not too late to participate in eth!
In another post yesterday, the same analyst had posted ethereum's weekly chart, noting that if eth could secure a sustained candle close above the $2,150 mark, the asset could be set for an exciting uptrend.
<img loading="lazy" decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/12/1701717598_201_Crypto-Analyst-Says-It39s-Not-Too-Late-to-Buy-Ethereum.jpeg" alt="ethereum Triangle” width=”2867″ height=”1515″/>
eth may be breaking out of the triangle | Source: @ali_charts on X
As can be seen from the chart, eth weekly price could be breaking out of an ascending triangle pattern. “Goals in sight? We could be seeing eth move towards $2,600, and possibly even shoot up to $3,500! Ali says.
eth price
ethereum has enjoyed fresh bullish momentum over the past few days as it has now shot above the $2,200 mark.
<img loading="lazy" decoding="async" class="alignnone size-medium aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/12/Crypto-Analyst-Says-It39s-Not-Too-Late-to-Buy-Ethereum" alt="ethereum price chart” width=”1534″ height=”869″/>
Looks like the price of the asset has been going up recently | Source: ETHUSD on TradingView
Featured image by Bastian Riccardi on Unsplash.com, TradingView.com charts, IntoTheBlock.com