Glassnode Explains: Ethereum Investors Have Made This Level Important Support! - Coin Newsletter

Ethereum (ETH) investors' cost-based breakdown suggests that a new price floor could be formed with heavy buying at $1,886.

Ethereum (ETH), which has been in a downward trend recently, draws attention with its reactions to investors' price movements. According to data shared by Glassnode, Ethereum's Cost Based Distribution (Cost Basis Distribution – CBD) metric shows that investors are accelerating their ETH purchases, especially at the $1,886 level.

The supply of ETH at this price level has recently increased from 1.6 million to 1.9 million ETH. This increase suggests that short-term price support is strengthening and traders see this point as an important support level.

On the other hand, Glassnode's specially developed "Capitulation Metric confirms this situation. This metric measures the extent to which the market's panic selling occurs, taking into account the weighted sales volumes (Realized Loss) investors sell at a loss. The recent decline in the price of ETH has seen a sharp rise in the value of the Capitulation Metric, indicating that investors have suffered significant losses, but at the same time, this situation is considered a buying opportunity.

A rise may come after panic selling

Despite the decline in the price of ETH, strong support at $1,886 could help traders increase their buying in the short term and push the price back higher. According to data from Capitulation Metric, ETH price appears to be moving upwards after similar panic sell-offs earlier. In light of this data, analysts urge investors to be cautious and keep a close eye on market movements.