Will Ethereum Price Drop to $1890? Cost Basis Distribution Points to Potential Risk

Key Insights:

• Glassnode analysis identifies $1890 as ETH’s key support level.
• Investors from August 2023 maintain their ETH positions, signaling long-term belief.
• Price may drop to $1890 after breaking the $2100 support zone.

Ethereum price faces a market correction, which raises doubts about its ability to sustain important support zones. Glassnode analysts identify $1890 as a vital price threshold because it marks the accumulation point of substantial ETH supply.

The price decline of ETH may create a robust support area at $1890, which would attract buyers to stop additional market losses. However, the market will experience additional selling pressure, which could result in additional price declines if this support level fails to maintain itself.

$1890 Holds the Largest Ethereum Price Accumulation Zone

Glassnode’s Cost Basis Distribution (CBD) analysis data shows that the biggest ETH buying zone exists at $1890 with 1.82 million ETH purchased. A substantial number of Ethereum investors purchased their coins at this price point, which establishes this area as a key defensive position for traders.

With ETH currently standing near its major support level at -10% from the current price, it makes $1890 a vital psychological threshold for market participants.

The $1890 accumulation zone began in August 2023 as numerous investors using cyclical strategies entered the market at that time.

That is to say, long-term market cycles guide cyclical investors to purchase and maintain assets instead of focusing on short-term market trends.

To add on that, investors conviction has prevented them from selling Ethereum at a loss, which has helped maintain the price stability at this level.

Investors Remain Engaged Despite Price Fluctuations

Furthermore, the Cost Basis Distribution of Ethereum price during the past two years reveals that investors who purchased ETH at $1890 in August 2023 have maintained their investment positions.

The investor behavior demonstrates their belief in Ethereum’s enduring value because they have not sold their assets during recent price declines. The investors who bought more Ethereum at elevated prices in November 2024 demonstrated their belief in the cryptocurrency’s long-term potential.

Additionally, a six-month evaluation of ETH cost basis demonstrates that investors who purchased Ethereum at $3500 in the beginning still maintain their positions.

They have decreased their ETH cost basis through time, meaning they purchased more coins at lower prices. These investors demonstrate their long-term faith in Ethereum price by taking in supply instead of selling at a loss.

The price trajectory of Ethereum shows that numerous investors expect its value to rebound in the future.

$2100 Identified as the Last Support Before $1890

The Ethereum price will encounter its final major accumulation area at $2100 before reaching $1890 if its value continues to drop.

Glassnode reports that the accumulation of 500,000 ETH at $2100 stands as significantly lower than the 1.82 million ETH accumulated at $1890.

Therefore, the support level at $2100 provides weaker resistance than $1890 so ETH has a greater chance of reaching $1890 after breaking below $2100.

However, a price drop below $1890 would likely trigger more market sellers because investors who purchased at this point might decide to sell their positions to minimize losses.

Disclaimer

In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.