Ethereum Faces No Major Resistance Until $3,417

On-chain data indicates that Ethereum does not face any significant resistance levels until it reaches $3,417, which could pave the way for the cryptocurrency to achieve this milestone. The Cost Basis Distribution, an indicator that shows how much of Ethereum's supply was last purchased at various price levels, suggests that the resistance ahead is more spread out.

According to the on-chain analytics firm Glassnode, Ethereum has recently broken through several notable supply levels. The $2,700 and $2,740 levels hold the cost basis of about 1.3 million ETH, while the $2,760 mark holds that of 800,000 ETH. These levels are considered important in on-chain analysis because investors are likely to react to price interactions with their cost basis. When the price retests these levels from below, holders may sell their coins to avoid further losses, creating a resistance barrier.

However, levels below these supply zones can act as support instead. Glassnode notes that the $2,700, $2,740, and $2,760 supply walls may now form a strong support zone. This support effect can arise from holders carrying a bullish mindset and looking at declines to their cost basis as dip-buying opportunities, or simply from them wanting to protect their acquisition boundary.

Looking ahead, the Ethereum Cost Basis Distribution shows that the levels before $3,417 have the supply distributed in a more uniform manner, with no strong clusters present. More specifically, the price levels before this mark contain 200,000 to 400,000 ETH at every $50 gap. In comparison, the $3,417 level currently holds the cost basis of about 607,950 ETH. If the $2,700–$2,760 support range holds, the path to $3,417 remains technically open, but the response from holders in the $2,800–$3,300 range will define how quickly ETH can climb.

Ethereum briefly broke above $2,830 in the past day, but the coin has since faced a pullback as it’s back at $2,780. The trend in the ETH price during the past five days shows a slight pullback, but the overall trend remains bullish. The lack of significant resistance levels until $3,417 suggests that Ethereum could continue its upward trajectory if the current support levels hold.