Ethereum (ETH) has likely reached a bottom based on several on-chain metrics, according to crypto analytics firm Glassnode.

Glassnode takes a look at a cost basis distribution (CBD) heatmap, which shows how many ETH positions break even at each price level and can often be used to pinpoint support and resistance zones.

The firm says the metric is currently suggesting ETH has strong support at around the $1,886 level.

“Ethereum’s Cost Basis Distribution (CBD) shows rising supply at $1,886, increasing from 1.6 million to 1.9 million ETH. This suggests a potential short-term price floor as investors accumulate at these levels, reinforcing support.”

Glassnode says the $1,886 price level corresponds with its “Capitulation Metric” for ETH, which integrates CBD and data on realized loss. According to the firm’s chart, spikes in the Capitulation Metric often precede ETH rallies.

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Glassnode also reports a significant jump in the supply of stablecoins, which is often viewed as bullish for crypto due to the new potential liquidity they bring to markets.

“Since Jan 1st, the aggregate stablecoin supply has increased by $20.17 billion (+10.9%), now reaching more than $205 billion.

For comparison, the December peak clocked in at $187 billion but the supply actually contracted in the last two weeks of 2024 and dropped to $185 billion by January 2025.”

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At time of writing, ETH is trading at $1,890.

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