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It’s “Not Too Late” To Buy Ethereum, Here’s Why

A crypto analyst has detailed the potential of the $2,000 range to serve as a robust long-term support for Ethereum, affirming that the current moment remains opportune for ETH investment.

It’s “Not Too Late” To Buy Ethereum, Here’s Why

The Opportunity to Invest in Ethereum

The opportunity to invest in Ethereum may not have passed, as suggested by a crypto analyst who outlines a compelling case for potential gains. Emphasizing a critical support level around $2,000, the analyst believes this range could serve as a substantial foundation for Ethereum’s value in the coming years, making it a viable option for investors.

Delving into the data provided by the market intelligence platform IntoTheBlock, the analyst, Ali, highlights a noteworthy trend in the on-chain acquisition distribution of Ethereum. The graph illustrates the number of investors or addresses that acquired Ethereum within specific price ranges. Notably, the $1,900 to $2,100 range stands out as hosting the highest concentration of holders, with the dot size indicating the density of investors within this bracket.

This range recently became a focal point for Ethereum’s consolidation, with trading activities contributing to an increasing number of holders establishing their cost basis within this band. The significance lies in understanding investor psychology, where the cost basis represents a crucial reference point. For investors, this particular price level becomes pivotal, as their profit-loss dynamics can undergo a shift when the asset’s spot price revisits this level.

In essence, the accumulation of Ethereum within the $1,900 to $2,100 range suggests a substantial number of investors finding value and confidence in this zone. As this range boasts a significant density of holders, it implies a collective belief in the potential stability and growth of Ethereum within this price bracket. Therefore, the analyst argues that the current juncture presents an opportune moment to consider Ethereum as an investment, with the $2,000 range serving as a key support base for potential long-term gains.

Given this rationale, investors holding Ethereum may exhibit a response when the anticipated retest occurs. Those who previously experienced profitability at the specific level may be inclined to expect a similar outcome and choose to increase their holdings.

While the impact of a few investors making such moves might be negligible, the collective effect of a substantial number of investors acquiring within the same narrow range could establish a robust support for Ethereum in the event of a retest. The $1,900 to $2,100 range, currently harboring the cost basis of 5.85 million addresses that acquired a total of 43.8 million ETH, signifies a profitable position for these investors.

ETH Price Prediction

Consequently, this range has the potential to trigger a significant buying reaction if Ethereum experiences a dip towards this level. Analyst Ali underscores that this range could evolve into a significant support level for the cryptocurrency in the years ahead, emphasizing that it’s not too late to consider investing in ETH.

In a recent post, the same analyst examined the weekly chart for Ethereum, pinpointing a pivotal level. Securing a sustained candle close above the $2,150 mark could pave the way for an exciting uptrend. The chart reveals a potential breakout above an ascending triangle pattern, prompting Ali to suggest ambitious targets. According to the analyst, Ethereum could be poised to reach $2,600, and potentially even surge to $3,500.

Recent market dynamics have favored Ethereum, with a surge beyond the $2,200 mark indicating a renewed bullish momentum in the past few days. As Ethereum continues to demonstrate strength, investors are keenly watching for further developments and potential price movements.

Source: AZC News


Disclaimer. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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