A Glassnode analyst has highlighted that Ethereum is currently retesting a critical on-chain supply cluster around the $2,750 level, which could determine the cryptocurrency's next directional move. According to analyst Chris Beamish, Ethereum's Cost Basis Distribution (CBD) heatmap reveals a dense concentration of ETH last purchased near $2,750, forming a significant support zone since the asset's November bottom.
This zone has already acted as support multiple times, with Ethereum rebounding after retests in December. A third retest is currently underway, and holding above this level suggests "absorption and base building." However, Beamish warns that "a breakdown would move price into thinner support where underwater supply may derisk." The analyst concluded that the "next move hinges on this level."
Concurrently, Ethereum is demonstrating relative strength against Bitcoin. While Bitcoin has faced increased downside pressure and triggered short positions, Ethereum's price action has remained stable, absorbing weekend liquidity without sharp declines. Traders are closely watching key technical levels: the weekly high of $2,957, support at $2,890, and a notable imbalance zone around $2,830.
Market participants note that higher timeframe charts show constructive structure for Ethereum, limiting aggressive short positioning. The focus has shifted to the $2,830 zone, viewed as a potential area for long setups if reversal signals confirm. This divergence, where Bitcoin shorts have been triggered but Ethereum has held firm, is shaping short-term trading strategies.
In related on-chain data, Glassnode noted a significant decline in Ethereum transaction fees, which have fallen to their lowest level since May 2017, potentially indicating reduced network activity. At the time of reporting, Ethereum was trading around $2,950, down 1.5% over the past week.
