Ethereum has closed April above $1,800 but experienced a negative month, marking a fourth consecutive decline. With current analysis suggesting its price may linger around a crucial support level, a potential drop to $1,500 looms if this support fails. On the other hand, should it hold, many predict a rise towards $2,100 is possible.
The recent surge in cryptocurrency markets brought Ethereum’s price to a close of just above $1,800 at the end of April. Yet, overall, April marked the fourth month straight of negative performance for the altcoin. Analysts are now watching closely, as Ethereum appears to be positioned above a crucial support level that could determine its fate in the upcoming weeks.
In a recent update shared on the X platform, crypto analyst Ali Martinez highlighted that Ethereum’s current price is at a pivotal point. He warns that losing the support level could see Ethereum tumble towards $1,500 in the near term. This assessment comes from examining the latest on-chain data and cost-basis analysis of Ethereum investors, which helps gauge potential support or resistance levels in price charts.
The analysis is particularly focused on the average purchase costs of Ethereum holders. A helpful chart illustrates this concept: the size of the dots—both green and red—indicates the volume of ETH tokens bought within specific price ranges. Larger dots signify higher buying activity, which correlates to stronger support or resistance levels.
Data from IntoTheBlock reveals that over 6.36 million ETH tokens were bought by approximately 4.5 million addresses in the price bracket of $1,772 to $1,824, averaging about $1,799. This considerable buying activity has helped form a solid support level right below the current price of Ethereum.
Expectations are suggesting that if Ethereum price drops to around $1,772, we might see a rebound. The reasoning here is that investors who acquired their tokens near this level are likely to step in and purchase more, thus providing necessary support to keep the price firm.
However, caution is warranted. The analysis also shows that there’s significantly lower investor activity beneath the $1,772 mark, indicating that if this support is broken, Ethereum could slide to approximately $1,500 without much chance for a rebound. Conversely, if the support holds up, analysts suggest that prices could potentially rise to $2,100 with minimal resistance ahead.
Currently, Ethereum is trading at about $1,830, marking an almost 1% uptick in just the last 24 hours. Investors and analysts alike are keenly observing these support levels, with implications for both short and long-term market behaviour being on the table.
