TLDR
- Ethereum is now trading below its realized price point from two years ago, approximately $2,058, signaling that most investors are underwater.
- With ETH trading between $1,750 and $2,000, significant resistance is seen at the $1,890 and $1,950 benchmarks.
- CryptoRank's latest figures show that merely 47% of Ethereum holders are still seeing profits.
- A massive Ethereum investor faced potential liquidation on a hefty 67,675 ETH, equivalent to $121.8 million, as prices ventured below $1,800.
- Analysts project that Ethereum might test the support region between $1,600 and $1,800 before any meaningful recovery happens.
Ethereum's dip below the significant $2,000 threshold has set the stage for volatile trading conditions, registering a 30% plunge since Eric Trump publicly endorsed ETH as a buy.
The past day has been a wild ride for ETH, with prices swinging from $1,760.94 to $2,006.69, presenting challenges for traders navigating these choppy waters.
ETH Price
This isn't just another price tremor. For the first time in two years, Ethereum's market price has slid beneath its historical average, as noted by Glassnode’s insights.
This realized price acts as a threshold, marking the average acquisition cost for ETH holders. A slide below it generally indicates investors are losing money.
According to Glassnode, the MVRV ratio has dipped to 0.93, pointing to the fact that, on average, Ethereum investors are facing a 7% unrealized loss.
Given this backdrop, most traders tend to hold rather than sell at a loss, creating reduced trade volume and buying activity.
Lookonchain data illuminates Ethereum's tumultuous times, with exchanges losing 16,179 ETH in just a day, amounting to departures valued around $30 million.
Fidelity alone pulled out 12,744 ETH, with a market value of $23.61 million, signaling a cautious stance even among major institutional players.
Despite this cautious withdrawal, Fidelity still holds a notable 422,325 ETH, worth $782.57 million, yet the outflows hint at changing market sentiments.
Technical Analysis
Technical analysis shows Ethereum Several key obstacles are challenging Ethereum's ascent. There's a bearish trend resistance at $1,890 seen on the shorter hourly charts.
Major resistance looms near $1,950, closely aligned with the 50% Fibonacci retracement of the recent drop. Surpassing this could pave the way toward the $2,000 milestone.
Should Ethereum fail to clear $1,890, experts predict further drops. Support levels are seen at $1,845, $1,800, and $1,750.
Ted Pillows believes Ethereum is likely moving towards the $1,600 to $1,800 zone, which has historically acted as a robust support level.
The declining trend has drastically hit investor returns. Only 47% of ETH savers are in the green, a sharp fall from the heights experienced above $3,500.
The sell-off wave is triggering liquidations among leverage users. A key Ethereum whale was at the brink of liquidation on a 67,675 ETH holding, worth $121.8 million, as prices slumped below $1,800.
In a bid to avoid liquidation, additional collateral was added, yet the investor faced severe liquidation pressure as prices waned.
Not everyone holds a pessimistic view. Trader Tardigrade highlighted that on the Stochastic scale, ETH has reached a monthly oversold level, an event in a recurring three-year cycle.
Historically, these oversold phases usually signal a market bottom, followed by robust recoveries. A similar outcome here could see Ethereum bouncing back significantly.
Ethereum co-founder Joe Lubin remains upbeat about the future despite the turbulence, stating his unprecedented confidence in Ethereum's potential.
