Ethereum is currently positioned with a critical support level around $2,200, a key figure identified through comprehensive on-chain data analysis. This particular price point represents a significant demand zone, as highlighted by analyst Ali Martinez, where a substantial portion of the ETH supply was acquired.

On-chain analysis considers price levels as major support or resistance zones when they correspond to the cost basis or acquisition level of a significant amount of a cryptocurrency's supply. The rationale behind this methodology is that investors tend to react when their break-even point is retested. While minor retests involving a small number of holders may have little market impact, the scenario changes dramatically when a large number of investors are affected.

According to the data, the price range of $2,218 to $2,396 currently stands out as the most significant demand zone. This area encompasses the cost basis for 6.28 million addresses, which collectively purchased an impressive 67.2 million ETH at these levels. This concentration of supply suggests that should Ethereum's price retest this range, investors are likely to exhibit a strong reaction. Given that these investors are currently in profit, they are more inclined to 'double down' on their asset holdings during price declines to their original acquisition mark, anticipating future profitability at the same level. Consequently, the $2,218 to $2,396 range is expected to act as robust support for Ethereum.

However, should Ethereum fall below the lower boundary of this strong support zone, specifically around $2,200, it would then need to find alternative support. The on-chain data indicates that subsequent support zones below this level hold considerably less supply. The next major support region is situated much lower, at approximately $1,160. At this level, 35.9 million addresses acquired 21.58 million tokens, making it the next substantial demand zone if the primary support fails. While a direct plummet to $1,160 is not guaranteed if $2,200 is breached, the data suggests that Ethereum could face greater difficulty in re-establishing its footing below the $2,200 mark.

As of the latest information, Ethereum's price is floating around $2,475, maintaining its position above the identified on-chain demand zone.