Ethereum

Bitcoin

Resistance

An analyst has explained that Ethereum could be set to see a further rally based on on-chain data. Here’s the level ETH may end up surpassing. 
<h2 id="ethereum-has-no-significant-on-chain-resistance-ahead">Ethereum Has No Significant On-Chain Resistance Ahead</h2> 
In a new <a href="https://twitter.com/ali_charts/status/1741814848982327779" target="_blank" rel="noopener nofollow">post</a> on X, analyst Ali has discussed how Ethereum’s support and resistance levels are looking like based on on-chain data. In <a href="https://www.newsbtc.com/news/ethereum/ethereum-conquers-2100-on-chain-data-2400/" target="_blank" rel="noopener ">on-chain analysis</a>, the potential for any level to provide any notable amount of support/resistance to the price depends on the number of investors who acquired their coins. 
Here is a chart that shows the amount of ETH that was bought at some of the price ranges that the asset has visited before: 
<img loading="lazy" decoding="async" class="alignnone aligncenter" src="https://pbs.twimg.com/media/GCwrWJZWEAAkgEc?format=jpg&amp;name=4096x4096" alt="Ethereum On-Chain Support &amp; Resistance" width="2352" height="860"> 
The graph shows that the $2,235 to $2,302 range carries the <a href="https://www.newsbtc.com/news/bitcoin/bitcoin-investor-cohorts-close-cost-basis-market/" target="_blank" rel="noopener ">cost basis</a> of a significant number of coins. More specifically, 1.84 million addresses acquired more than 6 million ETH inside this range. 
Currently, the Ethereum price is trading just above this range, implying that all these investors are in the green. If the Ethereum spot price retraces into this range, these holders could show some reaction, as their profit-loss boundary would be retested. 
Since these holders would have been in profits just before the retest, they might want to buy more, as they may believe that this same price range that was profitable earlier might turn out to be a worthy buy again. 
Since the range is thick with investors, this buying effect that may arise on a retest could end up providing support to the price. If the support fails, the price might be between $1,958 and $2,029. 
This range is much more robust, hosting a cost basis of over 37 million ETH. Ali notes that this support could potentially help cushion any corrections that may take place. 
Now, Ethereum has strong support below, and as is apparent in the chart, there is no major demand wall above it simultaneously. Investors in loss (those with a cost basis higher than the current spot price) may be desperate to escape the market, so the price rising to their break-even can be an enticing exit opportunity. 
If many holders are sitting at a loss, their demand zone could provide significant resistance to the price because of such selling. ETH has no such obstacles in the nearby price ranges so that the coin could rally further. “The path ahead of ETH is clear, with no significant supply barriers in sight, suggesting a potential rise to $2,700 or beyond,” explains the analyst. 
The market intelligence platform <a href="https://twitter.com/intotheblock/status/1741188714963882035" target="_blank" rel="noopener nofollow">IntoTheBlock</a> has also shared a chart that could provide further evidence for a bullish case of Ethereum. 
<img loading="lazy" decoding="async" class="alignnone aligncenter" src="https://pbs.twimg.com/media/GCnx6NpWwAAyE7d?format=jpg&amp;name=small" alt="Ethereum Long-Term Holders" width="680" height="370"> 
As is visible in the above graph, the percentage of Ethereum investors who can be classified as “<a href="https://www.newsbtc.com/news/litecoin/litecoin-breaks-record-hodlers-network-exceed-5-million/" target="_blank" rel="noopener ">HODLers</a>” (1 year+ holding time) has shot up recently. “This year, the percent of long-term ETH holders surpassed that of Bitcoin for the second time ever!” notes IntoTheBlock. 
<h2 id="eth-price">ETH Price</h2> 
Ethereum is currently at the $2,316 mark, not too far above the support zone mentioned earlier. 
<img loading="lazy" decoding="async" class="alignnone size-medium aligncenter" src="https://www.tradingview.com/x/EJlSNY56/" alt="Ethereum Price Chart" width="1534" height="868">

Ethereum “Set For Further Gains,” Analyst Puts This Target

Table of Contents

NewsBTC

Other articles published on Jan 1, 2024

Global crypto ATM network shrunk more than 5,700 in 2023

Orbit Chain Lost $81M To A Major Hack Exploit On New Year Eve

Pro XRP lawyer John Deaton spotlights Warren’s lack of action in FTX case

Will BONK retrace 100% of its gains?

Bitcoin Struggles While Solana (SOL) Eyes Future Gains

Investors Turn Eyes to Sub-Dollar Cryptocurrencies as 2024 Approaches

Join our free newsletter for daily crypto updates!