Ethereum (ETH) has slipped below the $1,600 mark, triggering concern among short-term traders. However, emerging
The second-largest cryptocurrency, Ethereum (ETH), has slipped below the $1,600 mark, triggering concern among short-term traders. However, emerging on-chain and technical data suggests the crypto giant could be entering a critical accumulation phase that often precedes major rallies.
According to a fresh analysis published on April 17 by CryptoQuant contributor abramchart, Ethereum is now trading near its realized price, currently around $1,585—a key historical level that has consistently signaled deep-value entry points for long-term investors.
The realized price is a fundamental on-chain metric calculated by the average price at which ETH coins last moved on-chain. According to Abramchart's analysis, when Ethereum trades at or below this level, it indicates undervaluation and market exhaustion.
"We can see that the price is approaching the lower band of the realized price model, and the market mood is becoming less bullish, which could be a good thing for institutions or big holders to start accumulating again for the next bull market."
Realized Price: Ethereum’s Rebound Signal?
According to the analysis, periods of low volatility and proximity to the realized price have acted as springboards for major upside moves. For instance, during the 2020-2021 bull market, when Ethereum exhibited low volatility and traded below the realized price for an extended period, it set the stage for a remarkable surge from $1,000 to $4,000 within a few months' time.
After finding support at the $1,000 level in 2021, which coincided with the realized price at the time, Ethereum experienced a significant price increase. However, this move was largely driven by market hype and exuberance, leading to a later correction as the price pulled back to the same $1,000 zone, marking the average price at which the last generation of coins moved.
Furthermore, the analysis highlights that periods of low volatility and proximity to the realized price have been pivotal in past cycles. For instance, during the 2020-2021 bull market, when Ethereum exhibited minimal volatility and traded below the realized price for an extended period, it set the scene for a substantial rally.
As the cryptocurrency navigates this technical and psychological crossroads, traders and analysts are keeping a close eye on the next catalyst—whether that be a macro shift, a breakout on the charts, or a surge in network activity.
