Ethereum reaches 3,400 dollars? On-Chain does not show any major barriers ahead.

On-chain data shows that Ethereum does not face any significant resistance levels until the $3,417 level, which could pave the way for this target. The Ethereum cost basis distribution shows that the resistance level ahead is widening. In a recent post on X, the blockchain analytics company Glassnode discussed how the Cost Basis Distribution is currently seeking Ethereum. "Cost Basis Distribution" is an indicator that tells us the last price at which the asset supply was purchased. First, here is the chart showing the latest breakout of cryptocurrency from this indicator's perspective:

As shown in the chart above, Ethereum has managed to break through a few notable supply levels with the latest bull run. Both the $2,700 and $2,740 levels maintain a cost base of around 1.3 million ETH, while the $2,760 mark remains the same cost base of 800,000 ETH. In on-chain analysis, levels of concentration with supply are considered important, due to the simple fact that investors are likely to react to price interactions with their cost base. When this retest occurs from below, holders may react by selling their coins. Investors at a loss may desperately want to return to green price levels, so when the price returns to breakeven, they may panic and exit for fear of sinking again in the near future. Of course, the more investors share their cost basis at a specific level, the stronger this selling reaction tends to be. Therefore, levels that hold a significant amount of supply can act as resistance levels for the price of ETH. Ethereum had previously been stuck under the aforementioned supply zones for a month, likely due to this resistance effect, but now, the cryptocurrency has finally reclaimed them. Just like the way the strong resistance levels above can create resistance, the levels below can act as support centers. Therefore, the role of the walls providing $2,700, $2,740, and $2,760 is likely to change now. Glassnode notes that "These investors have accumulated during the consolidation phase and are now likely to form a strong support zone." Support effects can arise from optimistic holders who view the decrease in their cost basis as a buying opportunity when prices drop, or simply from their desire to protect their buying threshold. Here is another chart shared by the analysis company showing what the Ethereum cost basis distribution looks like for the latest spot price resistance levels:

From the chart, it can be seen that the previous price levels have Ethereum supply distributed more evenly, with no strong clusters until the resistance level of $3,417. Specifically, the price levels before this mark contain 200,000 to 400,000 ETH at each $50 interval. In comparison, the $3,417 level currently maintains a cost basis of approximately 607,950 ETH. Glassnode explains: "If the support range of $270,000–$276,000 is maintained, then technically, the path to $342,000 is still open - but the response from holders in the range of $280,000–$330,000 will determine the rate of increase for ETH - currently, the price has risen 47.5% QTD."