Ethereum's (ETH) 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

Recent on-chain data from Glassnode has revealed that Ethereum’s (ETH) latest upward push encountered a snag at the $2,800 price point. This zone is a major supply zone with long-term holder positions.

According to Glassnode's cost-basis heatmap, there’s a significant cluster of investor cost basis levels around $2,800 for $ETH. As price approaches this zone, sell-side pressure may increase as many previously underwater holders may look to derisk near breakeven.

Source: Glassnode

The crypto price dropped from highs of around $3,800 in December 2024 to lows of $1,600 in May 2025. From that March low, the crypto price has recovered to test the $2,800 price point again.

During the first quarter of 2025 market downturn, there was a strong shift in lower price ranges for Ethereum. The supply density is seen to be increasing between the $1,600 and $2,000 price ranges.

This is the range that later facilitated Ethereum’s price rebound in May 2025. As the crypto price tested lows of $1,600 in March of 2025, it presented an opportunity for accumulation.

However, the bulk of the selling activity is seen to be at the $2,800 price point as it is the upper boundary that ETH has yet to decisively penetrate.

If Ethereum can pierce through this $2,800 level sustained volume, it might convert previous resistance levels into new support.

Without a strong breakout, the continuation of the price bumping against this heavy supply band could fatigue buyers and trigger profit-taking or defensive selling from nervous holders.

Another angle highlighted by CryptoQuant’s data is that Ethereum’s recent price gains aren’t yet being fully mirrored by a proportional jump in its daily active address activity.

As of May 2025, ETH has climbed back to around $2,500. But the number of active addresses is still seen to be at around 340,800.

This figure, while a slight uptick from the sub-300,000 levels earlier in the year, lags behind the steeper spikes in address activity seen during late 2023 and early 2024.

If we look at previous trends, usually, large surges in active addresses accompany periods of rapid price rallies or signal the formation of local price tops.

The contrast here—price up, but new active user growth relatively flat—suggests that existing participants, rather than new traders, might be the main factor driving Ethereum’s latest price move.

This signals that the recent price gains might be more closely linked to changes in liquidity preferences or leveraged trading activity among existing traders.

Just as this report is being put together, the crypto price saw a 3.46% in the 24-hour trading period to $2,567.78.

This marks a drop of over $100 from its high just the prior day, and its market capitalization slipped to $309.99 billion, while trading volume ticked up by 8.77% to $22.81 billion.

This increased volume alongside a price drop could indicate a surge in liquidity as sell orders hit the market, potentially triggering stop-loss orders.

Also, the cryptocurrency’s inability to sustain its gains above the $2,600 price point after testing this level on May 12 and 13 could be a factor in today’s downturn.

This showcases the strength of the $2,800 resistance area, which traders will be closely watching to see if it can be breached.