The post Ethereum Cost Basis Distribution Trends Downward – What Does This Mean For ETH? appeared on BitcoinEthereumNews.com.

Investors’ sentiment and confidence in Ethereum, the second-largest digital asset appears to be improving in spite of recent troubling market developments that have hamper its market dynamics. Key metrics show a substantial accumulation of ETH, reflecting its position as a leading asset in the ongoing cycle. Market Trends Changing As Ethereum CBD Decline? Ethereum’s market dynamics are currently shifting even as the asset’s price struggles to recover crucial resistance levels. Leading on-chain data analytics and financial platform Glassnode points to a downward trend in Ethereum’s Cost Basis Distribution (CBD) metric amid fluctuating market performance. A decrease in the cost basis distribution frequently indicates a broader change in the market’s dynamics or a rise in selling pressure. However, this is not the case for ETH right now. According to the on-chain platform, the key metric shows that several cost bases have been moving lower, which suggests that investors have been accumulating ETH as prices have dropped. Key support for the accumulation zone is at the $2,632 level, while resistance is at the $3,149 level. Data from Glassnode reveals that over 786,660 ETH were purchased by investors at the $2,632 support zone. Meanwhile, more than 1.2 million ETH were acquired by investors at the $3,149 resistance area. Such massive accumulation reflects investors’ strong sentiment and confidence in Ethereum’s future performance. Ethereum’s cost basis distribution moving lower | Source: Glassnode on X Glassnode noted that investors are averaging and buying ETH at lower prices rather than entirely selling their coins and exiting positions. Furthermore, a long-term conviction is reflected by the lowering cost basis, a similar trend has been observed in $MKR. As Ethereum’s price faces heightened volatility, watching this trend is crucial as it could impact the altcoin’s trajectory in the upcoming weeks. During these uncertain periods, a large portion of ETH…

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Filed under: News - @ February 25, 2025 10:17 pm