• The price of Ethereum recently broke the key support level of $1600.
• ETH price witnessed a brief surge lately after finding support at $1539 level.

Glassnode, a blockchain analytics platform, recently reported that just around 53.5% of Ethereum addresses are profitable. The cryptocurrency’s price has dropped by 13.66% over the previous 30 days. Moreover, the price of Ethereum recently broke the key support level of $1600.

According to Glassnode’s calculations, the last time the percentage of profitable Ethereum addresses fell under 54% was on January 12 this year. In the latter days of 2022 and the first few days of the current year, the proportion dropped even further.

Retail Traders Likely Buying the Dip

At the time of writing the price of ETH is $1596 as per data from CMC, up 1.08% in the last 24 hours. The price of ETH witnessed a brief surge lately after finding support at $1539 level. The price is testing the $1620 resistance level at the time of writing. If the price manages to close over $1620, it may go higher towards the next resistance level at $1670.

The recent price decline that brought ETH all the way till $1539 is supposed to have sparked a purchasing mania. Retail traders likely saw this as a chance to buy assets at rock-bottom prices, and they rushed in to do so.

On the other hand, Ethereum’s price may drop again if it is unable to break above the $1620 barrier level. The area around $1565 should provide first downward support. Moreover, if the price drops below $1530, it might drop further to the $1500 area. In this scenario, it is possible that the price will further drop below the $1440 mark.