The Ethereum price is undoubtedly in a better place in recent weeks than it was in the year’s first quarter. However, the “king of altcoins” appears to be stuck in a loop — one involving repeated pushbacks at a specific price level.
After riding the week’s bullish momentum, the Ethereum price faced significant downward pressure above $2,700 and has since crashed to around where it started the week. Below is the underlying factor for ETH’s struggles above $2,700.
What’s Happening To ETH’s Price Above $2,700?
In a May 24 post on X, blockchain analytics firm Glassnode shared fresh on-chain insights into the movement of the Ethereum price over the past few days. According to the crypto platform, the next most significant level for the price of ETH lies at around $2,800.
The rationale behind this on-chain observation is the cost-basis distribution of the ETH supply. The relevant metric here is cost basis distribution (CBD), which reflects the total Ethereum supply held by addresses with an average cost basis within specific price brackets.
Source: @glassnode on X
As shown in the chart above, the CBD metric uses a heatmap with fixed price bracket levels (on the vertical axis) for a given period (on the horizontal axis). This indicator offers insights into trend shifts in investor cost basis over a specific period.
Glassnode noted that there is a significant cluster of investor cost-basis distribution around the $2,800 Ethereum price level. Basically, this implies that several investors acquired their coins around this price region.
Going further, Glassnode explained that the Ethereum price may witness significant sell-side pressure as it approaches the CBD cluster around $2,800. This phenomenon is based on the propensity of several previously underwater investors to look to offload their assets near breakeven.
This on-chain revelation explains why the Ethereum price has been facing rejection above the $2,700 mark over the past few weeks. For the second-largest cryptocurrency to break above this supply barrier, the demand for ETH around the CBD cluster must outweigh the selling pressure.
Ethereum Price At A Glance
As of this writing, the Ethereum token is valued at around $2,0, reflecting a less than 1% decline in the past 24 hours.
The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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