According to an explanation from the blockchain analytics firm Glassnode in a recent post on X, the upward trend of ETH has stalled after the asset reached levels of historical value models.

The model referred to here is the 'Active Average Price', which essentially tells us about the cost basis of investors or the average address on the Ethereum network. This metric differs from the conventional Realized Price as it excludes inactive or lost supply from the data.

The asset's price seems to have encountered rejection at its peak | Source: Glassnode on X

As shown in the chart above, Ethereum has recently traded above the Active Average Price, indicating that holders of this asset on average are sitting on some unrealized profits.

The recent bull run has pushed this cryptocurrency beyond this level and has actually tested the +1 SD threshold. From the chart, it can be seen that this threshold is currently around $4,700.

This is the price level that the asset peaked at last week before beginning a decline of about 10%. Therefore, it seems that this threshold may serve as a resistance level.

According to the analytics firm, this is not uncommon, as this line has served as a barrier multiple times in previous cycles. The reason for this trend may lie in the fact that this level represents a profit margin for investors large enough to trigger mass selling driven by profit-taking.

In the current cycle so far, Ethereum has managed to break through this line once, in March 2024. However, this breakout only lasted for a short time, indicating that selling pressure once again posed a significant barrier to growth.

In other news, last week was the strongest week for Ethereum exchange-traded funds (ETFs) since they were launched in the United States, as Glassnode pointed out in another post on X.

The trend of net cash flow of ETH ETFs over the past year | Source: Glassnode on X

As can be seen in the chart above, Ethereum ETFs in the United States witnessed a strong increase in net cash flow last week, with 649,000 tokens of this asset added to wallets linked to these funds. The coin rose above $4,700 as this cash flow poured in.

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