Ethereum (ETH) has been on a remarkable recovery journey over the past week, with its price surging by more than 30%. Despite a slight pullback in the last 24 hours, where it declined by 2.1% to just above $2,500, Ethereum remains in a strong position.
This positive momentum in the price of ETH has been part of a broader trend in the crypto market, with Ethereum breaking into new price zones that have surpassed important realized price levels. This movement in price has caught the attention of analysts, particularly CryptoQuant’s contributor, BlitzzTrading, who has been closely monitoring ETH’s realized price data and its relationship to different wallet cohorts.
BlitzzTrading highlighted that Ethereum has surpassed the average cost basis of most holders, segmented by wallet size. The average cost basis, also known as the realized price, represents the average price at which a specific group of investors acquired their ETH. By analyzing this data, traders can identify potential support levels or areas where profit-taking might occur.
According to BlitzzTrading’s analysis, holders with ETH balances between 100–1,000 have a realized price of $2,225, those with 1,000–10,000 ETH have a realized price of $2,196, and wallets with 10,000–100,000 ETH hold at a realized price of $1,994. On the other hand, wallets holding over 100,000 ETH have a significantly lower average cost basis of $1,222. With the current ETH price hovering around $2,500, most of these groups are currently in profit.
However, the analyst also pointed out that price corrections to retest these levels are common after sharp rallies, regardless of the market structure. This indicates that while the current situation looks favorable for ETH holders, caution is advised as volatility and potential price fluctuations are always a possibility.
In a related post, BlitzzTrading delved into the profit-taking behavior of Ethereum whales, which are addresses holding over 10,000 ETH. These large investors have the potential to impact market prices significantly due to the volume of their trades. The analyst highlighted that profit-taking by whales after ETH hit $4,000 previously led to a price drop to $1,300. Monitoring such activities is crucial as they can provide insights into potential shifts in market trends or short-term price ceilings.
As Ethereum approaches levels where whales are significantly in profit once again, it will be interesting to see how the market responds and whether there will be further price adjustments or consolidation. Overall, the current market conditions indicate a positive outlook for Ethereum, but investors should remain vigilant and monitor key indicators to make informed decisions.