On-chain data shows Ethereum has successfully found a rebound at a major support zone, a positive sign for the asset’s exploration at higher levels. Ethereum Recently Made A Retest Of A Strong On-Chain Support Zone In terms of on-chain analysis, the potential of any particular price range to act as support or resistance lies in the total number of investors who bought their coins inside said price range. The reason behind that is the holders are more likely to react whenever the price retests their cost basis or acquisition price, which is obviously an important level to them since it can flip their profit-loss situation. Related Reading: Bitcoin Deja Vu: Capital Inflows Mirror Pre-2021 Bull Run Momentum A single holder showing such a reaction won’t cause any effects on the market, naturally, but if a large number of investors share their cost basis inside a tight range, the asset’s retest of the range could perhaps produce a sizeable reaction. Hence, the larger the concentration of investors inside a particular range, the higher the ab ..
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