Ethereum Price Falls Below $2,500 — Upcoming Support Levels to Watch

The price of Ethereum has faced significant bearish pressure in recent weeks, mirroring the fragile condition of the entire cryptocurrency market. The altcoin experienced a nearly 20% drop in value over the last week, plunging beneath the psychological threshold of $3,000 since Thursday, January 29th. As the market appears to be at risk of further declines, it remains uncertain how low the Ethereum price may go in this bearish trend. However, recent on-chain data provides valuable insights into the next critical support levels for the second-largest cryptocurrency.

Key Takeaways

Ethereum's price has dropped under $2,500, reflecting a 20% decline over the past week.
Key support levels to watch include $2,623, $2,475, and $1,881 based on recent on-chain data.
The current trading price of Ethereum stands around $2,410, with potential risks of falling further if key support levels are broken.

Ethereum price

Key Support Level: $2,475 According to Glassnode

In a recent update on the X platform, crypto analyst Ali Martinez pointed out the next three on-chain support levels for Ethereum's price. This analysis is based on the UTXO Realized Price Distribution (URPD) metric, which helps in identifying significant resistance and support levels based on where investors have purchased the cryptocurrency.

To provide context, an investor's cost basis is the price at which they bought their cryptocurrency (in this case, Ethereum). A price level's ability to serve as an on-chain support or resistance area is typically linked to the number of investors whose cost basis resides at that level.

The UTXO Realized Price Distribution tracks how much of a specific cryptocurrency was bought at various price levels. Therefore, levels below the current trading price experiencing significant trading activity are often viewed as major support zones, as illustrated in the chart below.

Ethereum
Source: @ali_charts on X

The reasoning for these support levels is that investors who have bought around these prices are more likely to purchase additional coins during a decline. Such buying activity may provide a cushion for the Ethereum price, allowing it to remain stable and possibly rebound.

According to data from Glassnode, Martinez identified the support levels at $2,623, $2,475, and $1,881 as critical after losing the $2,772 threshold. However, it seems that the price of the altcoin has also dropped below both the $2,623 and $2,475 support points following its decline over the weekend.

Current Ethereum Price Status

As of now, ETH is trading at approximately $2,410, marking a decline of more than 10% in the last 24 hours. This recent drop shows the altcoin hovering close to the support level around $2,475. If Ethereum remains below this support level, it could fall as low as $1,881. Such a drop would represent a 25% decrease from its current price and over a 60% correction from its cycle peak.

Ethereum price
The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingView