The current realized price of Ethereum has come into focus as one of the critical variables that might indicate an altcoin rally is upon investors.
Currently, 10% of the tokens are controlled by large holders who own 89% of ETH, while only 8% of holders are in profit.
Technical Indicators point to ETH being oversold and likely to bounce back, but the open interest in calling and putting options highlights divergent trader sentiment.
Ethereum's current fixed price has caught traders' attention as the overall market has been declining. Historically, when the market price of ETH surpasses the realized price, it often signals the start of a bull run for alternative cryptocurrencies. Analysts are monitoring these signals, suggesting that the realized price of Ethereum could signify the beginning of a growth period for other altcoins
Large Holders and Key Support Level
The current state of the market has a second reason: the distribution of Ethereum among the most prominent wallets. The data shows that around 89% of Ethereum is owned by large entities. This means there could be significant fluctuations if these large holders decide to sell. Currently, only 8% of Ethereum owners are profitable, and many investors are facing challenges in the current bear market, which may impact their activity in the short term.
https://twitter.com/cryptoquant_com/status/1829491679306375429
For the past five months, the market price of Ethereum has come under severe selling pressure while the realized price has remained strong. In a new study conducted by CryptoQuant, this level has proven to be a critical support zone as it represents the average price at which all the coins were last shifted. Such a level indicates that there is persistent demand for Ethereum and may signal further bullish trends in the altcoins market.
Technical Indicators and Mixed Market Sentiment
Besides, the realized price remains stable, although there are several signs that Ethereum’s price dynamics may be changing soon, according to some technical signals. The Relative Strength Index (RSI) on the daily chart is 50.11, suggesting that ETH is in a neutral position. The MACD also indicates a bullish crossover, which signals a possible reversal of the current downward trend. These indicators are critical, and the traders closely watch these signals before engaging in massive trading operations.
Source:Tradingview
However, the spot price pattern indicates a probable bullish reversal; the Ethereum derivatives imply a more complex scenario. Data for the last few days show less trading and open interest, suggesting that traders are not aggressive. This sentiment is somewhat mixed and reflects an ongoing volatility in the market.
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