The native token of Ethereum, Ether (ETH), fell below $2,000 on March 10, and the altcoin has been finding it difficult to rise back above this significant threshold.
In the past 24 hours, while Bitcoin (BTC) and XRP showed slight recoveries, Ether’s prices did not demonstrate any bullish signs on the charts.
On March 11, the altcoin sank to a multi-year low of $1,752. However, on-chain data and technical analyses suggest that prices could decline further by 15% over the next few weeks.
Ethereum dips below realized price for the first time in two years
The current price drop beneath $2,000 has significant on-chain implications for the altcoin. Data from a reputable analytics platform indicates that ETH has gone below its realized price of $2,054 for the first time since February 2023.
Ethereum’s realized price and MVRV. Source: X.com
The realized price of ETH reflects the average price at which it last moved, representing the average cost basis of its total circulating supply. The current plunge below this price signifies that many ETH holders are experiencing unrealized losses.
The market value to realized value (MVRV) ratio has also decreased to 0.93, indicating an average loss of 7% for all ETH holders. However, it’s essential to recognize that the realized price is based on the weighted average of all past transactions, accounting for the cost basis of every ETH holder rather than being limited to a specific timeframe such as 2023 to 2025.
Ethereum’s TVL chart. Source: DefiLlama
Simultaneously, Ethereum’s total value locked (TVL) fell to $45.6 billion on March 12, marking a six-month low—down 41% from its peak of $77 billion on December 17, 2024.
Furthermore, the total fees incurred by users on the Ethereum network dropped to $46.28 million, the lowest since July 2020, indicating reduced network activity.
Related: Starknet to settle on Bitcoin and Ethereum to unify the chains
Ether trading between $1.6K-$1.9K is seen as “attractive”
A recent post shared insights on how the distribution of Ethereum’s cost basis could help identify potential support levels for ETH. According to a weekly perspective, Ether’s recent decline below $1,880 has resulted in an accumulation of 600,000-700,000 ETH around the $1,900 mark. The analysis indicates:
“This suggests that $1.9K could serve as a support level if ETH remains consolidated at current prices. Above this, $2.2K (with 465K ETH) represents the next potential resistance. The limited supply gap between $1.9K and $2.2K makes a near-term move towards resistance quite feasible.”
Ethereum weekly analysis by Ninja. Source: X.com
Additionally, an anonymous analyst has noted that the floor price for Ethereum remains within the $1,600 to $1,900 range. This trader deemed the mentioned range as an “attractive region for commercial investment” and has set a high swing target at $2,500.
Related: Bitcoin whales hint at $80K ‘market rebound’ as Binance inflows cool
This article is not intended as investment advice or recommendations. All investments and trading actions carry risks, and readers should perform their research before making decisions.