- ETH’s technical setup aligns with 2021 and 2024 altseason patterns.
- Glassnode data reveals clustered ETH supply near critical support range.
Ethereum has reclaimed the midline of its two-week Gaussian Channel, a move that previously preceded major altcoin rallies. Recent movement above the midline of the 2W Gaussian Channel marks a crucial technical milestone.
The Gaussian Channel, known for tracking market cycles through red and green bands, shows consistent breakout trends during prior rallies. Key years such as 2018, 2019, and 2020 reflect periods of accumulation and recovery, while 2021 and 2024 saw explosive altcoin movements after similar patterns emerged.
Market analysts compare the current setup with the structure seen ahead of previous altseasons. With Ethereum leading, this often creates upward momentum across alternative cryptocurrencies. The visual pattern from the Gaussian Channel strengthens the argument for a market-wide move, with Ethereum acting as the catalyst.
Market Fragility Evident in Cost Basis Metrics
Data from Glassnode reveals that a substantial portion of Ethereum’s supply is held just above its cost basis. Approximately $123 billion in ETH is positioned 0–20% above the acquisition price, mostly between $2,300 and $2,500. This concentration leaves Ethereum vulnerable to shifts in sentiment, as a slight decline could push many wallets into unrealized losses.
Glassnode’s charts show expanding yellow and orange bands, indicating an increased clustering of holders near these price levels. Analysts highlight this dynamic as a sign of caution.
While price momentum is positive, the underlying structure shows Ethereum remains in a delicate zone, especially with market cap distributions showing sensitivity to price corrections.
Technical Indicators and Long-Term Vision from Buterin
Ethereum’s recovery from April lows of $1,385 has lifted the price to around $2,655. The Relative Strength Index (RSI) reads close to 68, approaching overbought conditions, but still suggests room for further gains.
The MACD shows continued bullish momentum, although recent sessions reflect a slight weakening. Price action remains above the 20-day Bollinger Bands midline, reinforcing the ongoing trend, with resistance seen near $2,850.
Vitalik Buterin, co-founder of Ethereum, commented on the platform’s future during a discussion about Sweden’s digital currency retreat. He said that Ethereum must be equipped to act as digital cash, especially as centralized financial systems face vulnerabilities.
Buterin cited Sweden’s halted e-krona pilot and emphasized the importance of privacy, reliability, and resilience during geopolitical disruptions. He pointed out existing challenges, such as dependency on secure hardware and double-spending risks, as key areas for development.
Ethereum’s position in the current market reflects both technical strength and structural caution. As it leads potential altseason trends, investors are closely monitoring price behavior and underlying metrics.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
