Quickly understand the history and background of various well-known coins

Ethereum's Price Hangs Above $1,772 Support Level

Coin WorldSunday, May 4, 2025 6:10 pm ET

1min read

Ethereum, the second-largest cryptocurrency by market capitalization, has been experiencing a volatile period. The altcoin closed April above $1,800, but failed to end the month in profit, marking its fourth consecutive month of negative performance. The latest on-chain data suggests that Ethereum is currently sitting above a crucial support level, which could significantly influence its trajectory in the coming weeks.

Prominent crypto analyst Ali Martinez highlighted that Ethereum's price is at a critical juncture. According to Martinez's analysis, if Ethereum loses its current support level, the altcoin could fall to around $1,500. This evaluation is based on the average cost bases of several Ethereum investors, a method used in crypto trading to determine a price level’s capacity to serve as support or resistance.

The analysis revolves around the volume of coins last acquired by investors in specific price regions. Data from IntoTheBlock indicates that more than 6.36 million ETH tokens were purchased by 4.5 million addresses within the price range of $1,772 and $1,824, at an average price of $1,799. This high buying activity has formed a major support level just beneath the current price. If the Ethereum price falls to this level, investors with their cost bases in and around $1,772 are likely to defend their positions by buying more tokens, helping the price to stay afloat in the support region.

However, the data also shows that price levels beneath the $1,772 support level have significantly less investor activity. This suggests that if the $1,772 support level is breached, the Ethereum price could fall to around $1,500 without catching a break. Conversely, if this support level remains unbreached, the price of ETH could rise to as high as $2,100, as there is no significant resistance ahead.

As of the latest update, the ETH token is valued at around $1,830, reflecting an almost 1% increase in the past 24 hours. The current price level is crucial for Ethereum's short-term future, as it sits just above the identified support level. The outcome of this support test will likely determine whether Ethereum continues its downward trend or bounces back to higher levels.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.