Ethereum (ETH) has dipped below its realized price of $2,200, a shift that has historically indicated a possible market bottom, as per recent market analysis.
The realized price denotes the average price investors paid for their ETH. When the market trades beneath this threshold, it indicates that many holders are experiencing unrealized losses, which can often lead to panic selling from less secure investors.
This decline follows a loss of approximately 20% in Ethereum’s value over the past week, plunging to a two-year low of $1,415 amid increasing macroeconomic uncertainties that have unsettled the broader cryptocurrency market.
An analyst has pointed out that Ethereum’s fall below the realized price, while difficult in the short term, has historically been seen as a long-term opportunity.
The analyst highlighted that similar downturns in previous cycles have marked the end of significant downtrends, where investor confidence is at a low and selling pressure is at its peak.
According to the analyst, while these situations can be unsettling, they often precede market recoveries. They emphasized that long-term investors might view this correction as a strategic entry point. If past trends are any indication, this current decline could lay the groundwork for the next upward movement in the market.