• Analysts note a solid support level at $2,370 for Ethereum (ETH), with strong buyer interest preventing further price drops.

• Over 90% of ETH addresses are “in the money,” with holdings worth more than their purchase price.

• Despite price volatility, active ETH addresses have dropped due to various reasons.

Ethereum (ETH) appears to have established a strong support at the $2,370 price level, according to a recent update by popular crypto analyst, Ali via X. This support price implies that buyers will consistently buy more ETH should its price drops around $2,370 to prevent it from dropping further.

Source: X (@ali_charts)

According to the analyst, there is little resistance standing in the way of ETH for further upward price movement. Hence, if there are more buying pressure, Ethereum’s price would likely move upward without any major hinderance.

However, short-term volatility remains a possibility due to broader crypto market conditions.

Other analysts added that the creation of a strong support suggests that investor confidence in the digital asset is strong at current price levels. Many ETH holders are unwilling to sell their ETH holdings at less than $2,370, which will further establish this price point as a support.

The chart accompanying the post (from the IntoTheBlock platform) offers a visual display of this market dynamic. It shows that most of the current Ethereum holders are “in the money” (the value of their current holdings is way higher than the amount of they purchased them).

This positive can lead to greater confidence in the cryptocurrency. The IntoTheBlock chart also shows that 90.21% of the current addresses bought their Ethereum at prices below the current level.

Meanwhile, the number of active ETH addresses has declined significantly in the last seven days, according to Glassnode data. The number of addresses dropped from about 46,000 to a little above 34,000 between May 12 and May 21.

Analysts suggests that market uncertainty or reduced speculative interest could be the cause of the drop in active addresses. The chart shows that there was a mismatch between the rise in the number of active addresses and Ethereum’s price.

For example, ETH’s price remained around $4,000 even though there was a sharp increase in the number of active addresses on May 17th. This price was almost the same as the cryptocurrency’s price earlier in the week even though it corresponded to smaller active addresses.

Source: Glassnode

Current CoinmarketCap data shows Ethereum’s price to be $2,658 after gaining 3.80%.