Ethereum (ETH) is now changing hands at a crucial price level. As per the exclusive market data from Glassnode, $2,800 plays the role of a noteworthy resistance level while a likely sell-side pressure is indicated by supply clusters. The on-chain analytics provider took to social media to share insights into Ethereum’s latest technical and psychological threshold.

Ethereum Witnesses $2,800 as Substantial Resistance Level with Huge Supply Cluster

At present, the significant resistance around the $2,800 mark points out that a massive number of crypto wallets purchased $ETH near or at this level. This has paved the way for a cost-basis overhang and could result in a spike in selling pressure while price is reaching this technical and psychological spot. The market data highlights that the area around $2,800 is marked by a big supply cluster.

In this respect, as $ETH is moving toward the respective region, several of the formerly underwater $ETH holders may de-risk or exit their positions. From December last year through April this year, $ETH went through a decline, plunging to nearly $1,800 before bouncing back. Nonetheless, the latest price recovery of Ethereum is currently facing a noteworthy test.

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The big supply cluster at the $2,800 spot serves as a robust resistance level. It has reportedly become a wall developed by former failed attempts at breakouts. Additionally, the breakeven wallets have also contributed a lot in forming this major wall. However, the supply clusters present there increase the risk related to rapid offloadings if the price stagnates. Apart from that, the profit-taking and bearish RSI would also add to this scenario.

Investor Sentiment Highlights Caution While ETH Moves Toward $2,800

According to Glassnode, Ethereum is witnessing $2,800 as a key resistance level. Keeping this in view, the investor sentiment shows caution. In the meantime, the traders are observing whether $ETH has the potential to maintain its momentum above the $2,600 mark. Effectively doing this could assist it in ultimately flipping the $2,800 spot into a significant support.