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Ethereum surged nearly 40% last week, increasing from a low of $1808 on May 8 to $2600 on May 10 as risk appetite returned to digital assets and amid a major network update.
According to market observers, Ethereum's Pectra update, which went live on May 7, served as a catalyst for fresh interest in the world's second-largest cryptocurrency. Pectra, which follows last year's Dencun upgrade, increased staking limits and wallet usability.
After surpassing $2,500 on May 10, the rally stalled, with Ethereum falling to a low of $2,407 on Monday.
In a recent tweet, on-chain data analytics platform Glassnode shed light on Ethereum's recent price action.
According to Glassnode, Ethereum's sharp move above $1,800 to above $2,500 was aided by the low supply concentration in that range.
However, the rally stalled near $2,580, a massive sell wall holding nearly 1.3 million $ETH. The advance into the sub-$2,500 zone was quick, aided by relatively little supply and low selling pressure. However, Ethereum's momentum cooled significantly as the price approached the $2,580 level, where 1.3 million were previously held.
Glassnode revealed that as Ethereum neared this level, this supply began to decline, dropping to just one million $ETH, a sign that many holders opted to exit their positions near their cost basis, cashing in on the recent rally.
What's next for $ETH price?
At press time, Ethereum was down 2.14% in the last 24 hours to $2,497, mirroring the profit-taking on the larger crypto market, which saw $606 million in liquidations in the same period.
Bulls are attempting to push the $ETH price beyond $2,500, but bears have maintained the selling pressure.
If the price falls below $2,435, Ethereum might drop to $2,320. If the price rebounds from $2,320, the bulls will try to restart the upward trend. Eyes will still be at the $2,580 resistance, as indicated by Glassnode, with one million $ETH left there.
The next resistance is at $2,850, but if that is overcome, $ETH might reach $3,000.
On the other hand, if the price falls and breaks below $2,320, it indicates that the bulls are taking profits. $ETH may drop to $2,110, which is expected to serve as support.