On March 10, the price of Ethereum (ETH) dropped below $2,000. Since then, ETH has struggled to regain a position above this psychological level.
Currently, the price is hovering around $1,800, and questions are rising about the coin’s next move.
While Bitcoin exhibited minor recoveries over the past 24 hours, Ethereum failed to display bullish momentum in the charts.
What Ethereum Cost Distribution Metric Shows
Taking to the X platform, data analytics platform Glassnode explained how the Cost Basis Distribution (CBD) metric can help identify potential support levels for ETH.
CBD captures investor behavior, revealing how many coins have a ‘cost basis’ around each price level. By doing so, users can see where key support and resistance clusters might form.
Based on a weekly outlook, Ethereum recently dropped below $1,880. This led to an accumulation of 600,000 – 700,000 ETH, around $1,900.
According to Glassnode, Ethereum may find support at $1,900 if it consolidates at the current level.
Glassnode added that the upper level of $2200 (accumulating 465,000 ETH) is a potential next resistance level.
The platform pointed out that the supply gap between $1900 and $2200 remains relatively small.
To CoinGlass, this minor gap makes it reasonable for the ETH price to rise to the resistance level in the short term.
Another crucial price level to watch in Ethereum price prediction is the lower trendline of a falling wedge pattern on its daily chart.
The falling wedge pattern often signals a reversal from a bearish trend.
Ethereum could see a major rally if it bounces from the lower trendline and flips resistance at the upper trendline with strong buy volumes.
Conversely, if support at this lower trendline fails to hold, it could cause further downside.
Ethereum and the Leverage Menace
Concerns about leverage and liquidations in the Ethereum ecosystem took a new twist when Tron Founder Justin Sun spotlighted them.
Earlier this week, a wallet suspected to belong to the Ethereum Foundation deposited 30,098 ETH into a MakerDAO vault.
According to the update from Lookonchain, the deposit was made to lower the liquidation price of ETH using the DeFi protocol.
As of yesterday, the wallet now holds 100,394 ETH worth $189 million on Maker, with a liquidation price of $1,127.06.
Journalist Colin Wu clarified that an address at risk of liquidation likely belongs to an early ETH investor, not the Ethereum Foundation.
This was against the initial assumption that the liquidation risks are tied to the Foundation.
Ethereum Price Prediction: Where is the ETH Heading?
As of this writing, ETH price was trading at $1,889, down 0.29% in the last 24 hours. The trading volume has also decreased by 36.15% to $23.68 billion, suggesting investors’ dwindling interest.
This drop comes despite a slight recovery in the broader crypto market, which surged 1.19% to $2.6 trillion.
Meanwhile, active Ethereum addresses jumped from 429,000 to 503,000 in 24 hours.
Network usage increases with more users, which typically indicates positive market conditions.
More network engagement drives increased market demand, typically higher prices.
Moreover, the adoption of Ethereum among institutions continues to grow. However, retail traders and professional investors maintain bearish sentiments.
The market data indicates potential price swings before establishing an upward trend that might help it break $3,000 in the short term.
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