Ethereum is retesting a dense on-chain supply zone around $2,750, a level that has repeatedly acted as support since November and could influence the asset’s next directional move, according to Glassnode analyst Chris Beamish. At the same time, Ethereum network fees have fallen to their lowest since May 2017, signaling subdued on-chain activity.
Cost Basis Distribution Highlights Key Support
Beamish shared an analysis on X referencing Ethereum’s Cost Basis Distribution (CBD), an on-chain metric that aggregates the volume of ETH last acquired at various historical price levels. Glassnode’s heatmap indicates a concentrated cluster of supply near $2,750 formed after the market bottomed in November.
Such clusters often serve as important support or resistance because many holders share a similar cost basis and may act to defend break-even levels. “Holding here suggests absorption and base building, but a breakdown would move price into thinner support where underwater supply may derisk,” Beamish wrote.
Repeated Retests Since November
Ethereum has tested the $2,750 zone multiple times. Two retests in December were followed by rebounds, and a third retest has occurred recently, with the level holding so far. A sustained hold would reinforce the area as support, while a decisive breakdown could expose the price to zones with less historical buying interest, where sellers with losses might be more inclined to exit.
Network Fees Slide to Multi-Year Lows
In a separate update, Glassnode noted that Ethereum transaction fees have declined to their lowest level since May 2017. Lower fees can reflect reduced congestion and less on-chain demand, although they can also be influenced by scaling improvements and shifting usage patterns across Ethereum and layer-2 networks.
Market Snapshot
As of press time, ETH is trading around $2,950, down approximately 1.5% over the past week.