Key Insights:
- Glassnode reports ETH below 2-year realized price with MVRV at 0.93
- Ted Pillows predicts ETH may test $1,600 to $1,800 support zone
- CryptoRank says only 47 percent of ETH holders remain in profit
Ethereum’s wild ride continues, Just in the past 24 hours, ETH price swung between a low of $1,760.94 and a high of $2,006.69—massive volatility that’s left traders on edge.
At the time of writing, Ethereum is trading at $1,904, still feeling the weight of a sharp 30% drop since Eric Trump’s infamous tweet: “In my opinion, it’s a great time to add ETH. You can thank me later.”
That tweet didn’t exactly age well. Instead of sparking a rally, Ethereum has struggled, with investors now facing tough decisions about whether to hold, sell, or buy the dip.
Ethereum Drops Below Realized Price, Leaving Average Investor at a Loss
Ethereum just slipped below its realized price—essentially the average price at which most investors bought their ETH—for the first time in two years. Right now,ETH price is trading around $1,900, while its realized price is about $2,058.04. That means a majority of ETH holders are officially underwater, sitting on unrealized losses.
According to data from Glassnode, the Market Value to Realized Value (MVRV) ratio has fallen to 0.93, which indicates that Ethereum investors are experiencing an unrealized loss of 7% on average.
Historically, when this situation occurs, traders normally choose to keep their coins instead of selling them at a loss because they expect prices to recover. But it also means reduced buying activity because of investor losses, which may result in continued price stagnation.
Adding to the pressure, data from Lookonchain shows that Ethereum is seeing significant sell-offs. In just one day, a net 16,179 ETH (worth about $30 million) left exchanges. Fidelity alone pulled 12,744 ETH ($23.61 million), signaling that even institutional investors are treading carefully.
While Fidelity still holds a hefty 422,325 ETH ($782.57 million), these outflows suggest a more cautious stance in the market.
ETH Price Loses $2K Support, Where to Next?
Meanwhile, ETH’s drop below $2,000 is a big deal. This level acted as a strong support zone for most of 2024, and now that it’s broken, traders are eyeing the next safety net.
Analyst Ted Pillows pointed out that Ethereum is likely headed toward the $1,600–$1,800 range—an area that’s historically been a major battleground for buyers and sellers.
If ETH price can hold steady there, it could set the stage for a bigger recovery, possibly pushing back above $5,000 in the long run. But if this support doesn’t hold, things could get messy fast
That said, not everyone is bearish. Trader Tardigrade, a well-known crypto analyst, highlighted that ETH has just hit a monthly oversold condition on the Stochastic indicator—a rare event that happens every three years. In the past, these oversold levels have signaled major bottoms, often followed by strong rebounds. If history repeats itself, Ethereum could be gearing up for a big comeback.
Only 47% of Ethereum Investors Currently in Profit Amid Price Decline
With ETH price struggling below $2,000, investor sentiment is taking a hit. According to CryptoRank, only 47% of ETH holders are currently in profit. That’s a stark contrast to just a few months ago when the token was comfortably trading above $3,500, and most investors were sitting on gains.
The sell-off is also triggering liquidations. Whale Alert recently flagged a major Ethereum investor who was at risk of liquidation on 67,675 ETH ($121.8 million) when prices dipped under $1,800.
To avoid a forced sell-off, He quickly deposited 2,000 ETH ($3.73 million) and repaid 1.54 million DAI to lower their liquidation price to $1,836. But the price kept sliding, ultimately leading to a massive liquidation event.
Despite all this chaos, Ethereum’s Joe Lubin expresses strong optimism about the token’s long-term prospects, despite the current market turmoil, he says “perhaps never been more bullish”. And the historical oversold signals identified by Trader Tardigrade indicate that ETH price could be approaching its lowest point.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
