Despite the slow down in the recent price rally, Ethereum is still showing signs of strength as traders continue to show resilience amid mixed price action.
On Wednesday, Dec. 11, popular crypto analyst Ali Martinez showcased data revealing that Ethereum has formed two major support walls below current price levels.
ETH holders scoop heavily around $2,800 and $3,150
Martinez made the analysis as he shared Glassnode’s latest cost-basis distribution heatmap, which shows that a large number of Ethereum holders have accumulated ETH heavily around $3,150 and $2,800.
Notably, the data shows that about 2.8 million ETH were accumulated at the $3,150 level and even more accumulated at $2,800.
While the levels represent high concentrations of investor cost basis, they have created strong demand zones that could help stabilize the price of Ethereum against further volatility.
With large amounts of Ethereum being scooped by traders at $3,150, it means that a large portion of the market is now positioned around support levels. Hence, there is a slim chance that ETH could slide below that price level as buyers would want to step in to defend it.
On the other hand, Ethereum has formed an even larger support wall at $2,800, where more than 3.6 million ETH were accumulated, marking one of Ethereum’s strongest demand zones of the year.
This means that if the crypto market experiences a deeper correction in the future, buyers may defend $2,800 to curtail losses for the asset.
Although Ethereum has slowed down on its latest rally, it is still maintaining a close above the crucial $3,150 support level, and the asset’s resilience above the major support walls suggests it might resume its uptrend, fueling hopes for the highly anticipated $5,000 target.
As part of Ethereum’s future outlook, large investors like BitMine have continued to scoop the asset in large quantities, with no plans to slow down.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team