Ethereum Breaks Out: Bullish Momentum Builds as Cost Basis Support Strengthens
The post Ethereum Breaks Out: Bullish Momentum Builds as Cost Basis Support Strengthens appeared on BitcoinEthereumNews.com. Ethereum has finally escaped what seemed to be a one-way path toward a prolonged sideways price action, leaving behind a narrow price range in which it had been trapped for more than a month. The second-largest cryptocurrency by market capitalization has pushed above key accumulation levels and is now eyeing the next major price hurdle. Was this the breakout move crypto traders have been waiting to see? Or was this pushup something more along the lines of a bull trap? The breakout makes a critical moment for Ethereum, which is up 47.5% since the start of the quarter — one of its strongest Q2 performances in recent years. Looking at cost basis distribution and options market activity gives us some clarity on the structure supporting this move and on the resistance levels we’ll encounter if Ethereum keeps moving higher. Cost Basis Clusters Signal Solid Foundation On-chain data shows that roughly 1.3 million ETH bought between $2,700 and $2,740. This is a key consolidation range over the last month. Moreover, 800,000 more ETH were acquired around $2,760. Let’s consider these as two purchase zones with a total of 2.1 million ETH accumulated in them. Accumulation behavior points to Ethereum’s new range low of between $2,700 and $2,760 acting as a potentially firm support zone if the price retraces. Why? Because investors who entered during the consolidation phase are now in profit. Those folks have every incentive to defend their positions — which is what “accumulation” suggests they’re up to. And that, in turn, is what makes the new range low a likely strong support zone. #Ethereum just broke out of a month-long range. Cost Basis Distribution shows 1.3M $ETH held around $2.70K and $2.74K, and 800K #ETH at $2.76K. These investors accumulated during consolidation and now will potentially form a strong…
The post Ethereum Breaks Out: Bullish Momentum Builds as Cost Basis Support Strengthens appeared on BitcoinEthereumNews.com.
Ethereum has finally escaped what seemed to be a one-way path toward a prolonged sideways price action, leaving behind a narrow price range in which it had been trapped for more than a month. The second-largest cryptocurrency by market capitalization has pushed above key accumulation levels and is now eyeing the next major price hurdle. Was this the breakout move crypto traders have been waiting to see? Or was this pushup something more along the lines of a bull trap? The breakout makes a critical moment for Ethereum, which is up 47.5% since the start of the quarter — one of its strongest Q2 performances in recent years. Looking at cost basis distribution and options market activity gives us some clarity on the structure supporting this move and on the resistance levels we’ll encounter if Ethereum keeps moving higher. Cost Basis Clusters Signal Solid Foundation On-chain data shows that roughly 1.3 million ETH bought between $2,700 and $2,740. This is a key consolidation range over the last month. Moreover, 800,000 more ETH were acquired around $2,760. Let’s consider these as two purchase zones with a total of 2.1 million ETH accumulated in them. Accumulation behavior points to Ethereum’s new range low of between $2,700 and $2,760 acting as a potentially firm support zone if the price retraces. Why? Because investors who entered during the consolidation phase are now in profit. Those folks have every incentive to defend their positions — which is what “accumulation” suggests they’re up to. And that, in turn, is what makes the new range low a likely strong support zone. #Ethereum just broke out of a month-long range. Cost Basis Distribution shows 1.3M $ETH held around $2.70K and $2.74K, and 800K #ETH at $2.76K. These investors accumulated during consolidation and now will potentially form a strong…
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