According to glassnode, Ethereum's sharp price increase from $1,800 to $2,500 was primarily facilitated by a low concentration of supply within that range, allowing for swift movement with minimal resistance. The rally encountered significant resistance near $2,580, a price zone where approximately 1.3 million ETH was previously held. As the price approached this level, on-chain data revealed the supply at this range dropped to 1 million ETH, indicating that holders began distributing coins near their cost basis, likely locking in profits and causing a short-term stall in upward momentum. This supply distribution is crucial for traders as it signals potential overhead resistance zones and selling pressure in the current market cycle, impacting short-term trading strategies and risk management (source: glassnode, May 12, 2025).