Ethereum (ETH) has begun to show signs of recovery after a sharp fall earlier this week that caused the price to drop to $1,471. As of today, this asset is trading at around $1,570, up 4.8% in the last 24 hours.
Ethereum is still under pressure from the broader market despite a recovery as analysts assess its short-term and long-term position. One of the focal points of the current market analysis is the Realized Price metric of Ethereum.
This on-chain indicator recalculates the market value of the network based on the last price at which each ETH moved, providing insights into the average acquisition cost across the blockchain. When ETH trades below this actual price level, it often reflects bearish sentiment and increased selling pressure as holders find themselves underwater.
ETH Fall Below Actual Price
According to on-chain analyst and CryptoQuant collaborator theKriptolik, the recent price fall of Ethereum has brought the price below the Realized Price. This development has significant impacts on the market. The analyst notes:
Each ETH is valued based on the price it was last transferred at. When you average all those price levels, you arrive at the Realized Price. This gives us a "more realistic" sense of the amount that the average investor has paid for their ETH — and it often paints a very different picture compared to the current market price.
The actual price often serves as a psychological support or resistance level. Trading above this level typically indicates confidence and support from investors; trading below this level indicates increasing resistance.
The analyst outlined three key points: First, the drop below the Actual Price often coincides with an increase in selling activity due to losses as investors react to the state of losses.
Secondly, such events are often associated with capitulation phases, when confidence is eroded and widespread sell-offs occur. Ultimately, historical data shows that ETH falling below this level often aligns with market bottoms and precedes subsequent long-term recoveries. theKriptolik has written.
Historical data shows that whenever ETH falls below the actual price level, it often coincides with the long-term bottom area. These periods are always followed by a strong recovery — making them strategic accumulation points for long-term investors. You can see this clearly reflected in the chart below.
What Does This Mean for Ethereum Investors
While the actual price breaking signals short-term volatility, it can also represent a potential accumulation zone. Previous cycles have seen Ethereum recover significantly after such fluctuations.
However, the current market situation and market sentiment will play a crucial role in determining whether this is a sustainable bottom or just a temporary pause in the broader downtrend.
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Ethereum Drops to Support Zone: Analyst Reveals What Could Happen Next
Ethereum (ETH) has begun to show signs of recovery after a sharp fall earlier this week that caused the price to drop to $1,471. As of today, this asset is trading at around $1,570, up 4.8% in the last 24 hours. Ethereum is still under pressure from the broader market despite a recovery as analysts assess its short-term and long-term position. One of the focal points of the current market analysis is the Realized Price metric of Ethereum. This on-chain indicator recalculates the market value of the network based on the last price at which each ETH moved, providing insights into the average acquisition cost across the blockchain. When ETH trades below this actual price level, it often reflects bearish sentiment and increased selling pressure as holders find themselves underwater. ETH Fall Below Actual Price According to on-chain analyst and CryptoQuant collaborator theKriptolik, the recent price fall of Ethereum has brought the price below the Realized Price. This development has significant impacts on the market. The analyst notes: Each ETH is valued based on the price it was last transferred at. When you average all those price levels, you arrive at the Realized Price. This gives us a "more realistic" sense of the amount that the average investor has paid for their ETH — and it often paints a very different picture compared to the current market price. The actual price often serves as a psychological support or resistance level. Trading above this level typically indicates confidence and support from investors; trading below this level indicates increasing resistance. The analyst outlined three key points: First, the drop below the Actual Price often coincides with an increase in selling activity due to losses as investors react to the state of losses. Secondly, such events are often associated with capitulation phases, when confidence is eroded and widespread sell-offs occur. Ultimately, historical data shows that ETH falling below this level often aligns with market bottoms and precedes subsequent long-term recoveries. theKriptolik has written. Historical data shows that whenever ETH falls below the actual price level, it often coincides with the long-term bottom area. These periods are always followed by a strong recovery — making them strategic accumulation points for long-term investors. You can see this clearly reflected in the chart below.
What Does This Mean for Ethereum Investors While the actual price breaking signals short-term volatility, it can also represent a potential accumulation zone. Previous cycles have seen Ethereum recover significantly after such fluctuations. However, the current market situation and market sentiment will play a crucial role in determining whether this is a sustainable bottom or just a temporary pause in the broader downtrend. ⚠️IMPORTANT! If you like this theme, don't forget: • Follow me @blogtienso for more interesting content! • Like, share, and leave a comment 💖 and don't forget DYOR! #Write2Earn # Write&Earn $ETH {spot}(ETHUSDT)