Ethereum Drops Below Realized Price Amid Market Shift
Key Takeaways
Ethereum (ETH) has fallen below its realized price – a historically significant indicator of potential market bottoms. While many investors are selling, large investors (“whales”) are taking the opportunity to buy the dip. The ETH/BTC ratio has hit a five-year low, indicating declining confidence in Ethereum. Nevertheless, this could present an interesting entry point for long-term investors.
Ethereum Falls Below Realized Price – A Warning Sign?
For the first time since March 2023, Ethereum’s market price is below its so-called “realized price.” This value represents the average purchase price of long-term holders, who typically remain invested during periods of high volatility. Such overlaps often indicate capitulation – the point at which many investors give up and sell.
Historically, these phases have often marked the end of downtrends and the beginning of new upward movements. Whether this pattern will repeat remains to be seen.
Historical Patterns: Opportunity in the Downturn
In 2018, mid-2020, and late 2022, Ethereum also fell below its realized price. In all cases, a significant recovery followed. These phases are known as accumulation zones – periods when experienced investors buy at low prices while less experienced participants exit the market.
This time could also represent an opportunity. Those thinking long-term may benefit from a potential turning point.
Whales Are Buying the Dip
On April 7, the ETH price dropped below USD 1,600. At the same time, on-chain data recorded a significant increase in large transactions. Two wallets purchased over 15,000 ETH – equivalent to approximately USD 24 million.
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Data from Santiment shows a rise in transactions exceeding USD 1 million. Such activity suggests that major market players consider the current price attractive. Historically, this behaviour often preceded stabilization or recovery.
ETH Losing Strength Against Bitcoin
The ETH/BTC ratio has fallen to 0.12 – a level last seen in early 2020. This means Ethereum is losing value relative to Bitcoin. This trend has been ongoing for more than two years and points to a structural weakness.
One possible reason: investors are increasingly favouring Bitcoin or new Layer-1 (L1) projects. If Ethereum fails to reclaim key price levels, capital could continue to flow out.
Our Assessment
The drop below the realized price is a signal that should be taken seriously. Historically, such phases have often been followed by recoveries. However, the current market environment also shows structural weaknesses, particularly in comparison to Bitcoin. The increased activity of large investors suggests that some market participants view the current level as a buying opportunity.
For you as an investor, this means: watch developments closely. If you believe in Ethereum long-term, this could be an interesting entry point. In the short term, however, the environment remains volatile and uncertain.
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $1,785.93 |
| 24h % | 2.47 % |
| 7d % | 12.61 % |
| 30d % | -13.43 % |
| 60d % | -33.52 % |
| 1y % | -42.95 % |
| Market Cap | $215,316,472,790.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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