Ethereum (ETH) Bulls Hit A Brick Wall Called The $2,800 Resistance Level

Ethereum’s recent upward climb hit a serious snag this week right around the $2,800 mark. Fresh on-chain data from Glassnode suggests this spot is a major supply zone, packed with long-term holder positions where many investors who bought in before the March and April downturns are now close to breaking even or seeing profits. That means selling activity could pick up as these traders look to de-risk or simply cash out.

Looking back from December 2024 to May 2025, Ethereum ($ETH) took a tumble from above $3,800 to near $1,600. The recovery ride since then managed to bring $ETH back up towards that key $2,800 neighborhood. It’s here that the latest cost-basis distribution, according to Glassnode’s heatmap, shows a whole lot of wallet activity. The largest concentrations on this heatmap clearly flag this $2,800 region as a zone of dense supply, signaling a potential price ceiling unless a strong wave of buying punches through the resistance.

Glassnode: $2,800 Zone Packed with $ETH Long-Term Holders Eyeing Profit

During the market downturn back in the first quarter of 2025, on-chain data shows Ethereum wallet activity noticeably shifted into lower price ranges. Supply density beefed up between $1,600 and $2,000 – a range that later acted as solid ground for Ethereum’s rebound in May. While this period of accumulation might have put a temporary floor under the price, that $2,800 level is still looming as the big upper boundary that $ETH hasn’t managed to decisively crack yet.

Source: X

If Ethereum can actually push past this $2,800 mark with some serious, sustained volume, it could flip previous resistance levels into new support. Otherwise, continued bumping up against this heavy supply band might just trigger renewed profit-taking or a round of defensive selling from nervous holders.

Related: Ethereum ($ETH) Shows “Golden Cross”; Analysts See $3,000 Price Target

CryptoQuant: Ethereum Active Addresses Lag Price Gains, Signal Caution

Adding another layer to the picture, Ethereum’s recent price gains haven’t been matched by a proportional jump in its daily active address activity. Data from CryptoQuant shows that while $ETH has climbed back to around $2,500 as of May 2025, the number of active addresses is hovering near 340,800. That figure, while a slight uptick from the sub-300,000 levels seen earlier in the year, still trails well below the spikes in address activity observed during late 2023 and early 2024.

Source: CryptoQuant

Historical trends often show that big increases in active addresses go hand-in-hand with general price rallies or signal local tops. The current divergence here—price up, but new active user growth somewhat flat—suggests that existing participants, rather than a fresh wave of new user adoption, might be the main engine behind Ethereum’s latest price movement.

Recent $ETH Price Dip Underscores Strength of $2,800 Resistance Ceiling

Just as this report was being put together, the Ethereum price took a 3.46% dip, trading at $2,567.78. That’s a drop of over $100 from its high just the prior day. Along with this, its market capitalization slipped to $309.99 billion, though trading volume actually ticked up by 8.77% to $22.81 billion, according to CoinMarketCap. This jump in volume alongside a price drop often reflects increased liquidity as sell orders hit the market, potentially triggering stop-loss orders.

Source: CoinMarketCap

Ethereum’s inability to hold its ground above $2,600 in this recent move really highlights just how significant that $2,800 resistance area is. Without a clean, decisive breakout above that heavy supply zone, traders should probably expect short-term price choppiness to stick around.