Ethereum Drops 17% In A Month, Faces Key Resistance Levels

Ethereum (ETH) has been experiencing a significant price downturn, with a 17% drop over the past month. This decline has brought key resistance levels into focus, which could potentially ignite a trend reversal if reclaimed. Analysts have identified two pivotal price points for Ethereum’s immediate future. The first is set at $2,100, which is seen as a necessary threshold for initiating a new upward trend. However, the $2,300 mark is regarded as a more decisive level that Ethereum must breach to confirm a bullish reversal. If Ethereum fails to reclaim these levels, it may lead to a further decline, with the next target points being $1,600 and $1,155. Such a decline would represent additional losses of 12% and over 37%, respectively, marking a troubling continuation of Ethereum’s worst first quarter in its history.

The Ethereum price is also facing a significant resistance wall between $2,200 and $2,580. On-chain data reveals that approximately 12.43 million investors have bought about 66.18 million ETH within this price range. A breakout above these levels could potentially generate bullish momentum for the cryptocurrency. However, bullish catalysts that could trigger a move above these levels remain scarce among experts.

Market intelligence firm Glassnode has indicated that ETH’s Cost Basis Distribution shows limited support near current prices. Weekly data suggests that addresses with a cost basis around $1,800 have not re-engaged. Many investors are reportedly selling at a loss, further adding to the current price uncertainty. On March 28, several clusters of approximately 250,000 ETH with cost bases between $2,000 and $2,050 effectively vanished, indicating that some higher-cost holders are attempting to average down their positions. However, Glassnode asserts that the overall Ethereum accumulation zone appears limited at current price levels, raising questions about future stabilization for the second largest cryptocurrency.

The largest accumulation zone below the current market price now sits at $1,537, where nearly 994,000 ETH was acquired. If the downtrend continues, this level is expected to serve as structural support in the near term, potentially providing a buffer against further declines. Ethereum is currently trading at $1,830, down 12% for the week.