Menu

Categories:

Hot right now:

Follow on:

Coinsurges provides coverage of fintech, blockchain, and Bitcoin, delivering the most recent news and analyses on the future of money. Stay up-to-date with live prices, charts, and trading options for the top exchanges. Keep track of the day's top cryptocurrency gainers and losers, as well as which coins have experienced gains and losses in the past 24 hours.
Trust Coinsurges as your go-to source for all news and updates in the industry.

Menu

Categories:

Hot right now:

Follow on:

Coinsurges provides coverage of fintech, blockchain, and Bitcoin, delivering the most recent news and analyses on the future of money. Stay up-to-date with live prices, charts, and trading options for the top exchanges. Keep track of the day's top cryptocurrency gainers and losers, as well as which coins have experienced gains and losses in the past 24 hours.
Trust Coinsurges as your go-to source for all news and updates in the industry.

Here’s Where Ethereum’s Last Line Of Defense Lies, According To On-Chain Data

Share This Post

On-chain data shows Ethereum has broken under all major investor cost basis levels, except for one. Here’s where this price level is currently situated.

Ethereum Has Only Realized Price Of Mega Whales To Rely On Now

In a CryptoQuant Quicktake post, analyst MAC_D has discussed about where the next major support level could lie for Ethereum. The line in question is a version of the Realized Price.

The “Realized Price” is an on-chain indicator that, in short, keeps track of the average cost basis of investors belonging to a given ETH cohort. When this metric is under the spot price, it means the average member of the group is holding coins at a net loss. On the other hand, it being above the asset’s value suggests the cohort as a whole is in a state of net profit.

Investor cost basis is considered an important topic in on-chain analysis, as holders can be more likely to show some kind of move when their profit-loss status is challenged.

Whether investors react by buying or selling can come down to which direction the retest of their acquisition level is occurring from. When it’s from above, holders may decide to accumulate more if the atmosphere is bullish, as they can consider the pullback to be just a ‘dip.’ This provides support to the asset, thus defending their cost basis.

Similarly, 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.

Ethereum Realized Price

From the graph, it’s apparent that the line provided support to Ethereum last year, but it has failed recently as the coin’s price has significantly fallen under it. This means 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:

Ethereum Whale Cost Basis

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.

ETH Price

At the time of writing, Ethereum is trading around $1,500, down more than 16% in the last 24 hours.

Ethereum Price Chart

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Stripe Integrates Stablecoins and AI Technology – Will AI Agent Coins Like $MIND Benefit?

Stripe, the global payment solution provider, has launched Stablecoin Financial Accounts It’s a new feature that will allow users to hold cryptocurrencies in the form of stablecoins Currently,

Alpen Labs Launches Bitcoin-Backed Stablecoin to Boost Censorship Resistance

Alpen Labs has introduced the bitcoin dollar (BTD), a bitcoin-collateralized stablecoin built on zero-knowledge rollup technology, aiming to provide a censorship-resistant alternative to centralized

Still Under $0.05, This DeFi Token Is Being Labelled One of the Best Cryptos to Buy Before Listings

The post Still Under $005, This DeFi Token Is Being Labelled One of the Best Cryptos to Buy Before Listings appeared first on Coinpedia Fintech News With the cryptocurrency market regaining momentum

Crypto Consolidation: Coinbase to Acquire Deribit for $2.9B

Coinbase Global has agreed to acquire Deribit, the world’s largest bitcoin and ether options platform, for approximately $29 billion in cash and stock $29 Billion Deal: Coinbase Buys Top Bitcoin

Is RLUSD Replacing XRP for Good? Brad Garlinghouse Clarifies

The post Is RLUSD Replacing XRP for Good Brad Garlinghouse Clarifies appeared first on Coinpedia Fintech News Ripple’s new stablecoin RLUSD is quickly gaining ground and it’s stirring up serious

Scotland Unveils First-Ever Bitcoin Scholarship Program, Powering BTC Bull Token Presale

In a landmark fusion of traditional education and cutting-edge digital finance, Scotland’s Lomond School has unveiled the Satoshi Scholarships, establishing the world’s first Bitcoin-powered