Ethereum’s price has been bouncing around lately, stuck between $2,500 and $2,750. It even dipped as low as $2,400 last week. While things haven’t been great for ETH lately, one analyst thinks it’s still on the right track.
The Realized Price Argument
An analyst on the CryptoQuant platform, known as Crypto Sunmoon, argues that Ethereum is still in a bullish trend despite recent dips. They point to the fact that ETH’s price has stayed above its “realized price.”
What’s the realized price? It’s the average price at which all the coins in circulation were last moved. It gives us a good idea of how long-term investors are feeling about the coin.
When the current price is higher than the realized price, it generally means most holders are making money, which tends to create a bullish atmosphere. Crypto Sunmoon believes that Ethereum staying above this realized price is a good sign for the entire altcoin market. Historically, a strong Ethereum price compared to its realized price has often been a signal of an altcoin bull run.
Ethereum’s August Performance
As of right now, ETH is trading around $2,517, down slightly over the last 24 hours. But the past week has been tougher, with ETH losing almost 9% of its value. Overall, August has been a rough month for Ethereum, with the price dropping more than 23% and falling below $3,000 earlier in the month.
Despite these recent struggles, Ethereum remains the second-largest cryptocurrency with a market capitalization of over $301 billion.
