A Detailed Analysis of Average Cost Basis for ETH Holders by Wallet Size

Ether (ETH) has experienced a remarkable increase over the past week, gaining nearly $1,000. Data indicates that the asset has risen by 56% in the last 30 days.

The cryptocurrency continues to astound skeptics, showing resilience against negative market sentiments. Insights from an on-chain analytics platform have identified key realized price zones for ETH, which denote the average cost basis for holders based on their wallet sizes.

Evaluation of Average Cost Basis in ETH Wallets

The average cost basis reflects the price at which a particular crypto asset has been purchased over time, providing insights into the average expenditure for each user.

An analyst from the platform noted that the recent rise in ether’s price has pushed it above the average cost basis for many holders. These price levels are significant, particularly during bullish phases, as ETH tends to revisit these metrics after breaking through them.

The average cost basis for wallets containing between 100,000 and 1,000 ETH stands at $2,225, while those with balances from 1,000 to 10,000 ETH have an average basis of $2,196. For wallets holding 10,000 to 100,000 ETH, the average cost basis drops to $1,994, and for wallets with assets exceeding 100,000 ETH, it is even lower at $1,222.

Positive Indicators for ETH

Just over a month ago, ETH’s price dipped below its realized price, hovering around the $2,000 mark. This metric represents the market value of ETH based on the last transaction prices recorded on the blockchain.

At that time, there were two potential reactions anticipated from holders in a loss position: either panic-selling or vigorous accumulation, leading to a rebound. Over the past four weeks, ETH has indeed shown a significant recovery.

According to the analysis, the nearest realized price zone relative to ether’s current price of $2,500 (currently down 3% in 24 hours) is $2,225. If ETH’s price were to decline further and dip below this threshold, the market could face two possible outcomes, including a fall below the $2,100 mark.

Nonetheless, analysts propose that the likelihood of ETH remaining in a bullish phase is higher for several reasons. Notably, funding rates across major exchanges have stayed slightly positive, reflecting an optimistic market attitude.

Additionally, there has been a notable reduction in selling pressure. Ethereum investors have been taking their assets off centralized exchanges, with withdrawals exceeding $1.2 billion in ETH over the past week.