Crypto Analyst Says It’s “Not Too Late” To Buy Ethereum, Here’s Why
December 04 2023 - 2:00PM
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A crypto analyst has explained how the range around $2,000 could
become a major Ethereum support base for years, making it not too
late to buy ETH right now. 43.8 Million Ethereum Was Acquired
Between $1,900 And $2,100 In a new post on X, analyst Ali has
discussed about why Ethereum could still be worth getting into at
this point. The analyst has cited data from the market intelligence
platform IntoTheBlock to explain this, referring to the on-chain
acquisition distribution of the cryptocurrency. The data for the
cost basis distribution of the asset | Source: @ali_charts on X In
the above graph, the dots represent the number of investors or
addresses who bought their coins within the corresponding price
range. Naturally, the larger the size of the dot, the more is the
density of holders who bought inside the range. It appears that out
of all the price ranges that ETH has visited in its entire history,
the $1,900 to $2,100 one hosts the cost basis of the largest
number of holders. Related Reading: Bitcoin Triumphs Over
$41,000, But Here’s What Could Prevent $50,000 ETH was just
recently consolidating inside this range, and as trading occurred
inside it, the investors slowly gained their cost basis there,
which is why the range has now swelled so large. Now, what
relevance does this range have for Ethereum? To understand this,
how investor psychology works must first be known. To any investor,
their cost basis is a particular price level, as their profit-loss
situation can flip when the asset’s spot price retests it. Because
of this reason, the holder might be more likely to show some kind
of move when this retest takes place. If the investor had last been
in profits, they might expect the same level to be profitable
again, so they may just buy more. A few investors doing such buying
won’t make the market budge at all, but if a large number of
investors bought inside the same tight range, the levels might just
end up providing support to Ethereum should it make a retest. The
$1,900 to $2,100 buyers are obviously in profits, so this range,
which hosts the cost basis of 5.85 million addresses who acquired
43.8 million ETH there, could show a major buying reaction if ETH
dips towards it. Ali explains, “this range could become a
significant support level for years ahead. So, it’s not too late to
get in on ETH!” Related Reading: Crypto Analyst Predicts Bitcoin
400% Surge To $200,000, Here’s When In another post yesterday, the
same analyst had posted the Ethereum weekly chart, noting that if
ETH could secure a sustained candle close above the $2,150 mark,
the asset could be set for some exciting uptrend. ETH may be
breaking out of the triangle | Source: @ali_charts on X As is
visible from the chart, the ETH weekly price could be breaking
above an ascending triangle pattern. “Targets in sight? We could be
looking at ETH marching towards $2,600, and possibly even soaring
to $3,500!” says Ali. ETH Price Ethereum has enjoyed some fresh
bullish momentum during the past few days as it has now soared
above the $2,200 mark. Looks like the price of the asset has been
going up recently | Source: ETHUSD on TradingView Featured image
from Bastian Riccardi on Unsplash.com, charts from TradingView.com,
IntoTheBlock.com
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