Ethereum Surges Past Important Realized Price Levels—Implications for ETH

Ethereum (ETH) saw a minor decline in value over the last day, experiencing a 2.1% drop to settle just above $2,500. Despite this short-term dip, ETH has maintained an increase of over 30% in the past week, indicating a robust recovery from previous market conditions.

This upward trend follows a general strength within the cryptocurrency market. Ethereum has surged into new price levels, surpassing several critical realized price points. The price dynamics of Ethereum have led a contributor from CryptoQuant, BlitzzTrading, to examine the realized price data for ETH, especially in relation to various wallet groups.

Associated Insights

Grasping Realized Prices Among ETH Wallet Categories

BlitzzTrading noted that Ethereum has exceeded the average acquisition cost for most investors, categorized by wallet size. The “average cost basis,” or realized price, signifies the average rate at which a specific group of investors obtained their ETH.

This calculation is based on evaluating the total value at which the coins were last transacted, offering a perspective on whether these investors are currently in profit or at a loss. Monitoring these benchmarks can assist traders in identifying potential support levels or zones where profit-taking may arise.

As per BlitzzTrading’s analysis, holders with balances ranging from 100 to 1,000 ETH have a realized price of $2,225. Those with 1,000 to 10,000 ETH hold at $2,196, while wallets that contain between 10,000 and 100,000 ETH have an average cost basis of $1,994.

For those with over 100,000 ETH, the average cost basis is significantly lower at $1,222. With the current ETH price around $2,500, the majority of these groups are realizing profits. Nonetheless, it is common for price corrections to revisit these thresholds, especially after significant surges, whether in bullish or sideways market structures.

Profit-Taking Behavior of Ethereum Whales Sparks Concerns About Short-Term Peaks

In a related analysis, BlitzzTrading examined the activities of large Ethereum holders, known as “whales,” which are defined as addresses containing over 10,000 ETH. These substantial investors can substantially influence market prices due to the volume of their transactions.

The analyst pointed out that after ETH previously hit the $4,000 mark, attempts at profit-taking by whales contributed to a drop to $1,300. Observing this behavior is crucial, as it may signal impending trend changes or possible short-term price ceilings.

Associated Insights

Currently, ETH is nearing price levels where whales significantly profit. If these large holders decide to liquidate their assets, akin to past cycles, it may exert downward pressure on prices.

However, if whale wallets choose to retain or increase their holdings, it could bolster overall market confidence. Continuous tracking of whale activities remains an essential method for assessing Ethereum’s near-term direction.

Featured image created with DALL-E, Chart from TradingView.