Ethereum Adjustment: Forecasting a Decline to $1,900 and Analyzing Key Support Levels

Ethereum (ETH) is undergoing a strong correction phase, as experts point out key support levels that could influence price behavior. Glassnode’s analysis, through the Cost Basis Distribution (CBD) index, suggests that ETH could drop below the $1,890 level - the largest accumulation zone for investors.

1. Analyze the CBD index and its significance The CBD index is used to determine the level of accumulation or distribution of assets in the past. The accumulation and resistance price zones from this index directly influence current market behavior. According to Glassnode data, the largest ETH accumulation zone below the current price level is $1,890 - this is the level at which investors bought around 1.82 million ETH in August 2023. This indicates a stable buying force at this price level and shows long-term growth expectations from these investors.
2. Investor’s accumulation strategy Even though it has been two years since the $1,890 purchase transactions, CBD data shows that many investors are still actively engaged. In particular, in November 2024, many investors increased their average purchase value in the context of market volatility, without panic selling at high prices. This is a sign of strong confidence in the long-term prospects of Ethereum, despite ETH currently facing strong price corrections.
3. The support levels and closing positions of ETH According to Glassnode’s analysis, in addition to the main accumulation area at $1,890, there is another important support level at $2,100. Although $1,890 is a significant accumulation level, if the downward trend continues, CBD data indicates that $2,100 will be a short-term support zone before ETH may decline below $1,890. However, note that at the $2,100 level, there are only about 500,000 ETH left, significantly lower than the amount of ETH accumulated at $1,890, which could create selling pressure in the short term.
4. The current market situation of Ethereum As of now, the price of Ethereum is trading around $2,250, up 3.84% for the day. However, following a sharp decline in the past week, ETH has recorded a loss of 30.48% for the month. Nevertheless, the market value of Ethereum has still increased by 7.74%, reaching $29.91 billion, demonstrating the fundamental strength and investor confidence in the long-term development potential of this coin.
5. Conclusion Data from Glassnode shows that despite Ethereum undergoing a strong price correction, investors are still actively accumulating at attractive price levels, especially around the $1,890 area. Meanwhile, the short-term support at $2,100 may help slow down the correction process before the price continues to decline below the main accumulation zone. This situation reflects a deep belief in the long-term growth potential of Ethereum, although the market is currently experiencing strong fluctuations. Investors need to closely monitor these support levels to make sound trading decisions in the context of continuous market volatility.