Despite expectations, ETH has underperformed against Bitcoin in recent months. However, new analysis from on-chain platform CryptoQuant suggests Ethereum may soon offer a favorable buying opportunity.
A CryptoQuant analyst highlighted that Ethereum is currently approaching its realized price, a key metric that often acts as a strong support level. Historically, this level has marked the beginning of significant rallies for ETH, as it reflects periods of deep value accumulation.
“Historically, every major ETH bull run has started near or below the lower band (green), reflecting deep value accumulation phases,” the analyst explained.
The realized price is an on-chain metric representing the average price at which all circulating ETH was last moved. When the market price nears or dips below this level, it typically signals that investors are accumulating at perceived discounts — often ahead of price rebounds.
Signs of Market Cooling
The analyst further noted that ETH is currently trending near the lower band of its valuation model, which has historically been associated with oversold conditions. According to the report:
“ETH price is currently approaching the realized price (blue) and nearing the lower band, which may indicate market cooling and a possible accumulation opportunity if the trend continues downward.”
Risk Remains Despite Bullish Signal
While the current price action presents a potential buy-the-dip scenario for long-term investors, the analyst also cautioned that further downside risk remains.
“Ethereum is approaching historically important support levels. While it could represent a buying opportunity for long-term holders, caution is still warranted as further declines are possible.”
A rebound from this level may signal a trend reversal, while a break below could confirm continued market weakness.
Market Sentiment Turning Bearish
As ETH trades closer to its realized price, investor sentiment has become increasingly bearish or neutral. Interestingly, this shift in mood has also preceded past market bottoms.
“The closer ETH trades to or below its realized price, the greater the likelihood that market sentiment will turn bearish or neutral. Historically, this has often preceded market bottoms,” the analyst concluded.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/is-ethereum-good-buy-at-the-moment-as-it-nears-realized-price-support/