The price of Ethereum has been experiencing significant bearish pressure over the past few weeks, continuing its downward trend over the last seven days. This adverse momentum has persisted even with the recent launch of spot ETH ETFs.
Recent on-chain data suggest that Ethereum’s price is nearing a critical support level. The pressing question now is whether Ethereum is facing a pivotal moment in its price trend. Market intelligence platform IntoTheBlock revealed in a recent post on the X platform that Ethereum’s price is on a downward trajectory towards $3,000—a level that has historically served as a solid support point. This assessment is based on the average cost basis of numerous ETH investors.
According to data showcased by IntoTheBlock, a significant number of addresses acquired ETH when it was priced around $3,000. Over 1.7 million addresses purchased ETH in the price range just below $3,000. The visual representation on the chart indicates heightened buying activity whenever ETH approaches the $2,913 – $3,000 zone, reflecting the importance and strength of this price range. This suggests that this bracket represents a crucial area of support for Ethereum.
The market intelligence platform IntoTheBlock commented on the situation, noting that as Ethereum dips below $3,000, there is potential for a surge in demand. Investors are likely to defend their cost basis by purchasing more ETH should the price fall to this critical range. Additionally, this historical price level might attract new investors looking to capitalize on a potential turnaround point for ETH.
However, there is a flip side to consider. If the $3,000 support level fails to hold, Ethereum’s price could continue its downward trend, potentially dropping to as low as $2,800. Given that the support at this lower level is relatively weaker, further declines could drive the price down to $2,600.
Currently, Ethereum’s price hovers around $2,988, which is almost a 7% drop in the last 24 hours, underscoring the cryptocurrency’s continued struggles over the past week. According to CoinGecko, Ethereum has seen a 9% decline in the last seven days, highlighting the ongoing challenges facing the “king of altcoins.”
