Investors Show Confidence in Ethereum
Despite the decline, data from Glassnode suggests strong investor confidence. The Cost Basis Distribution (CBD) data shows that many investors continue to buy Ethereum as prices drop. A key support level has formed at $2,632, where 786,660 ETH has been acquired. Resistance sits at $3,149, with 1.22 million ETH accumulated.
Ethereum’s recent flight from exchanges is a crucial optimistic indicator. 178,500 ETH, valued at almost $444 million, have left exchanges in the last 48 hours. This suggests that investors are taking their money out of exchanges and putting it in their personal wallets, most likely for long-term holding.
Can Ethereum Recover?
After two days, Ethereum’s price has dropped 11% to $2,486. The cryptocurrency has been declining for the past three months and has failed to hold above the critical resistance level of $2,793.
To try and recover, Ethereum must regain $2,654 as support. A successful break above this level could help it break above $2,793 and aim for $3,000. However, if not, Ethereum could fall further to $2,344, extending losses and shelving hopes for a recovery.
