Ethereum (ETH) has been in a downward trend since December, after the race reached a peak of $ 4,000 at the time. In the meantime ETH has even dropped under the psychological limit of $ 2,000, a level that has not been seen since December 2023.
This has led to almost all ETH holders currently suffering an average unrealized loss. The big question is: where is the soil for Ethereum?
Ethereum onder de ‘realized price’
On March 10, the Ethereum race dropped below the $ 2,000 border and since then it lacks strength to recapture this level. While Bitcoin and XRP recover somewhat, ETH continues to perform weakly. On March 11, Ethereum even reached a low point of almost $ 1,750, the lowest level in several years.
On-chain data from Glassnode shows that Ethereum has fallen under the ‘Realized Price’ of $ 2,054 for the first time since February 2023. This means that the average purchase price of all circulating ETH is higher than the current rate, which means that a large part of the market is in the minus.
In addition, the MVRV ratio-an indicator that compares the market value with the realized value-has fallen to 0.93. This indicates that ETH holders make an average 7% loss. The fact that the course is under the Realized Price may indicate that further falls are possible.
Lower TVL and transaction costs indicate reduced activity
Another worrying signal for Ethereum is the decrease in the Total Value Locked (TVL) within the network. On March 12, the TVL was at $ 45.6 billion, a decrease of 41% compared to the peak of $ 77 billion on December 17, 2024. This indicates that less capital is retained in Ethereum’s defi-ecosystem and that the activity on the network is purchasing.
In addition, the transaction costs on the network have fallen to $ 46.28 million, the lowest level since July 2020. This suggests that less use is made of the network, which usually indicates a decreasing involvement of users.
Is $ 1,600 an attractive purchase zone?
According to on-chain data from Glassnode, the recent decrease has led to an accumulation of 600,000 to 700,000 ETH around the $ 1,900 level. This may indicate that $ 1,900 becomes an important support point if the price here stabilizes.
In addition, an anonymous analyst, known as Ninja, states that the zone between $ 1,600 and $ 1,900 is considered an attractive purchase zone for institutional investors. This could indicate that Ethereum finds a soil here. A first price target with a recovery would then be around $ 2,500.
ETH is currently acting around the $ 1,900 level. The wider cryptomarkt will now play an important role in the further price trend. Some analysts predict that Bitcoin has not yet found its soil and possibly will fall further to $ 70,000. If this scenario takes place, an ETH floor around $ 1,600 is a realistic scenario.
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Source: https://newsbit.nl/ethereum-koers-zakt-onder-2-000-dreigt-een-verdere-daling-naar-1-600/
