Ethereum Faces $1,160 Support Risk If $2,200 Level Breached

Ethereum is currently experiencing strong support at the $2,200 level, according to on-chain data. Analyst Ali Martinez has highlighted that if this support level is breached, the next significant support zone to monitor could be at $1,160. This analysis is based on the cost basis or acquisition level of a substantial portion of the Ethereum supply, which indicates that investors are more likely to react when their break-even levels are retested.

Martinez shared a chart illustrating the distribution of Ethereum supply across different price levels. The chart shows that the range between $2,218 and $2,396 currently hosts the largest amount of supply, with 6.28 million addresses having purchased a total of 67.2 million ETH at these levels. This suggests that if Ethereum retests this range, investors could exhibit a strong reaction, potentially acting as a support level.

However, if Ethereum falls below the $2,200 mark, the next major support zone is significantly lower, at $1,160. This zone is where 35.9 million addresses acquired 21.58 million tokens. The smaller supply in the ranges below $2,200 indicates that Ethereum may face challenges in regaining momentum if it drops below this level.

Currently, Ethereum is trading above the on-chain demand zone, with its price hovering around $2,475. This position suggests that Ethereum is in a relatively stable state, but the potential for a significant drop to $1,160 remains if the $2,200 support level is breached. Investors should closely monitor these levels to gauge the potential impact on Ethereum's price movement.