Ethereum Drops 12% Below Realized Price, Whales Accumulate 130,000 ETH

Ethereum has recently experienced a significant drop, falling 12% below its Realized Price, which is an on-chain indicator that calculates the average cost of all Ethereum coins in circulation based on their last transfer price. This metric is crucial as it represents the psychological threshold for risk, and a drop below it often signals bearish sentiment. As of the latest update, the Ethereum price hovers around the $1,550 mark, showing a modest 4-5% recovery after hitting the $1,430 low earlier this week.

According to a CryptoQuant analyst, the recent dip has taken Ethereum below its Realized Price. The analyst explained that each ETH is evaluated based on the price it was last transferred at, and averaging out all those prices gives the Realized Price. This provides a more realistic sense of what the average investor paid for their ETH, often painting a different picture from the current market price. The analyst outlined three implications of the recent Ethereum price dip. First, the drop in Realized Price tends to increase loss-driven selling as investors panic. Second, such situations usually end up in the capitulation phase, where investor confidence shrinks and sell-offs occur. Lastly, whenever the ETH Realized Price has underperformed, it has led to long-term bottom zones, resulting in heavy accumulation of the cryptocurrency.

Despite the bearish sentiment indicated by the Realized Price, there is a notable ray of hope for Ethereum. ETH whales have come back, acquiring over 130,000 ETH in the past few days. This signals confidence among institutional players despite the uncertain market behavior. This accumulation also coincides with analysts claiming that the Ethereum price may be forming a bottom. While Ethereum’s dip below its Realized Price raises concerns about the short-term growth, it also presents an opportunity for accumulation. If historical patterns hold true, some positive Ethereum news could soon be seen, with a potential flight to higher levels like $2,400.

The Ethereum price has been boasting of a stable recovery since the Monday market crash, but the price action of the last 24 hours seems to have reversed some of its progress. The day started on a positive note for Ethereum, with a golden cross on the MACD. The buying pressure also seemed adequate to push the price to $1,611. However, consequent death crosses led Ethereum down to the $1,554 support. Much like the last few days, Ethereum consolidated, but instead of breaking out upward, it abandoned its supports consistently. The RSI reveals that the selling pressure is still dominating Ethereum’s price movements. Ethereum first found support at $1,554, then dropped to $1,451, and finally, with another trading range, fell to $1,398 at the end. The buying pressure in the last 12-14 hours has been infinitesimal for Ethereum, and any uptrends have met strong downturns. Despite touching oversold zones a few times, ETH could not sustain any uptrend.

As of the latest update, the Ethereum price is testing the $1,482 resistance. The RSI levels are overbought, which means ETH will not be breaking out of this resistance just yet. If we base the prediction on historical performance, a break below the support level is very likely. In other words, analysts predicting an ETH bottom soon may be right after all. The recent price action and the drop below the Realized Price suggest that Ethereum is in a critical phase, with potential for further declines. However, the accumulation by ETH whales and historical patterns indicate that this could also be an opportunity for long-term investors to accumulate the cryptocurrency.