Ethereum's Price Surges 35% in Two Weeks, Faces Key Support at $2,354

Ethereum's price performance in May has been remarkable, with a surge of over 35% in the past two weeks. The altcoin reached a high of nearly $2,700 on May 13 but has since struggled to maintain its momentum. Despite managing to stay above the $2,500 mark for most of the past week, Ethereum's price dipped below this level over the weekend, ending the week on a downward note.

Prominent crypto analyst Ali Martinez shared an on-chain analysis on the price of Ethereum, highlighting the next significant support level for the altcoin. This analysis focuses on the average cost basis of several Ethereum investors, which measures the ability of a price level to act as support or resistance based on the total amount of coins last purchased by investors at that level.

According to the analysis, the Ethereum price has key support around the $2,354 – $2,430 zone. This region is significant because 2.64 million addresses purchased 63.9 million tokens worth $153.04 billion at an average price of $2,395. If the price falls toward $2,400, investors with their cost bases around this level would likely defend their positions by buying more tokens, thereby countering the downward pressure and keeping the Ethereum price afloat.

The chart indicates that there is no significant resistance ahead for the price of Ethereum. However, the altcoin must hold above the $2,400 level to avoid a potential drop to as low as $2,200. As of the latest update, the price of ETH stands at around $2,480, reflecting a 0.7% increase in the past 24 hours. Despite this, the altcoin is down by nearly 4% on the weekly timeframe, indicating a mixed performance over the past few days.