Ethereum (ETH) Dumped Below its Realized Price: Here’s Why it Matters

ETHEREUM (ETH) has decreased below a major scale known for the realized price, a level often indicating the surrender of the market.

Observers say that this means that ETH is now emerging with less than its value, as assets are traded at $ 1570, a decrease of 16.7 % this week and 56.6 % in the past 12 months.

Why the achieved price is important?

According to the adequate Cryptoquant “Thekriptolik”, the achieved price is a basic measure of the investor’s psychology. Unlike the market price, which fluctuates on the basis of trading activity, it calculates the value of ETH based on the last transfer price per currency. Basically, the average cost that each ETH has last moved on the chain.

This scale now sits less than the current market value, and in Thekriptolik’s analysisWhen this happens, most ETH holders are in the loss area, and may lead to two reactions.

First, this can lead to the sale of panic in the short term where more investors see their positions in red, especially during periods of increased uncertainty, as is the case now, while strengthening President Donald Trump’s new policies. Chaos On both traditional markets and encryption.

This fear -based dumping drives prices to a decrease, as shown when I touched ETH for a short period of $ 1,431 before a simple recovery.

However, according to Thekriptolik, whenever ETH goes below its price, it is usually followed by strong recovery. In their opinion, these drops can determine the initial accumulation areas where investors are waiting for subsequent gatherings.

The short term

However, short -term predictions remain chaotic. After a loud start for this year, when one of it was registered The worst ever Offers in a quarter, ETH continued the vortex of landing.

Although at the time of writing this report, it increased by 5 % within 24 hours, it was worse than the wider encryption market for seven days, as it lost nearly 17 % of its value compared to 8.8 % in the market. Feelings also deteriorate quickly, as the fee and greed index sits on 24, which reflects “fear”.

In addition to the complexity is the delay of the Pectra upgrade from Ethereum. It was originally expected this month, it was the case delayed To May 7. Although it is uncommon, such a delay can shake confidence during the actually declining times.