Ethereum Drops 16% in 24 Hours, Largest Holders' Support at $1,290

On-chain data indicates that Ethereum has fallen below all major investor cost basis levels, with the exception of one. This remaining level of support is currently situated around $1,290, which is the Realized Price of the largest holders in the sector, those with over 100,000 ETH in their balance.

The Realized Price is an on-chain indicator that tracks the average cost basis of investors within a given ETH cohort. When this metric is below the spot price, it suggests that the average member of the group is holding coins at a net loss. Conversely, when it is above the asset’s value, it indicates that the cohort as a whole is in a state of net profit. Investor cost basis is a crucial topic in on-chain analysis, as holders may be more likely to take action when their profit-loss status is challenged.

When the retest of their acquisition level occurs from above, holders may decide to accumulate more if the atmosphere is bullish, considering the pullback to be just a ‘dip.’ This provides support to the asset, thus defending their cost basis. On the other hand, investors who were underwater just prior to the retest might believe the surge wouldn’t last and they would fall back into losses again. So, they could make the decision to exit, to at least escape with their entire investment back.

A cost basis level that has shown particular importance for not just Ethereum, but digital assets in general is the Realized Price of the entire network. As the chart shared by the quant shows, this level is currently situated around $2,250 for ETH. The price of the coin appears to have plunged under the metric in recent days, meaning that the average holder on the blockchain is now sitting on a notable loss.

With this major level gone, the Realized Price of the individual cohorts could help point to where the next support could be. Here is a chart displaying the trend in the indicator for investors holding between 100 to 1,000 ETH, 1,000 to 10,000 ETH, 10,000 to 100,000 ETH, and more than 100,000 ETH. As is visible in the graph, Ethereum has put three of the cohorts underwater with the latest crash. Now, only the largest of holders in the sector, those with over 100,000 ETH in their balance, are still in the green.

Back in the 2022 bear market, ETH found support at the Realized Price of these humongous whales. Thus, it’s possible that this line could once again be of relevance to ETH. At present, the cohort has its average acquisition level at $1,290, so it will take more bearish action before a retest can take place.

At the time of writing, Ethereum is trading around $1,500, down more than 16% in the last 24 hours. The price of the coin seems to have plummeted, but the Realized Price of the largest holders could provide the next line of defense for Ethereum.