CryptoQuant Analyst Identifies Ethereum Trend that Could Trigger the Next Altcoin Bull Run

An on-chain analyst from CryptoQuant identifies an important Ethereum trend that could trigger the next altcoin rally.

CryptoQuant analyst SunMoon recently called attention to Ethereum’s price compared to its Realized Price (RP). The Realized Price represents the average price at which each Ethereum token was last moved. This price serves as a psychological support level in the market.

At the time of his analysis, SunMoon’s chart showed that Ethereum’s price stood at $2,522, while the Realized Price hovered around $2,210. Despite Ethereum’s sharp decline over the past five months, it has managed to stay above its Realized Price, which now acts as support. 

The analyst confirmed that historically, when Ethereum’s price remains above its Realized Price during market downturns, it has often preceded a bullish phase for altcoins.

This market trend hinges on investor sentiment. Notably, whenever Ethereum’s price is above the Realized Price, it indicates that the majority of ETH holders are in profit, which reduces selling pressure and boosts confidence among investors. 

Ethereum Forms Bullish Divergence

Meanwhile, in a separate analysis, market veteran Michaël van de Poppe focused on the daily ETH/BTC trading pair. For context, traders often regard Ethereum’s strength against Bitcoin as a precursor to broader altcoin strength, making the ETH/BTC chart particularly relevant.

Van de Poppe pointed out a bullish divergence on the chart. A bullish divergence occurs when the price forms lower lows, but the Relative Strength Index (RSI) forms higher lows. In this case, despite ETH declining to 0.0425 BTC, the RSI has shown signs of upward momentum.

Van de Poppe highlighted the importance of the 0.042 BTC level as a critical support for Ethereum. If ETH can maintain this level, it could trigger a rebound, potentially pushing the price towards 0.046 BTC or higher. He identified this area as crucial for a trend reversal.

Additionally, van de Poppe noted that ETF flows, which had been stagnant, are now slightly turning positive. On Aug. 27, daily net outflows cooled to $3.4 million, with a net inflow of $5.9 million on Aug 28. This marked the first positive flow into ETH ETFs over a ten-day period.

Overall, Ethereum’s ability to hold above its Realized Price alongside the bullish divergence on the ETH/BTC pair shows that the ETH market could be gearing up for a potential bullish reversal. At press time, ETH currently changes hands at $2,478.