Ethereum’s native token, Ether (ETH), has taken a nosedive, slipping below the $2,000 mark on March 10. The crypto community is buzzing as this altcoin struggles to reclaim its position above this psychological threshold. While Bitcoin (BTC) and XRP have shown some signs of life with minor recoveries, Ether’s charts remain stubbornly bearish.
On March 11, Ether hit a multi-year low of $1,752, sending shockwaves through the market. Analysts are now eyeing a potential further drop of 15% in the coming weeks, according to on-chain data and technical analysis. The question on everyone’s mind: Is this the bottom, or is there more turbulence ahead?
Ethereum has dipped below its realized price for the first time since February 2023, according to Glassnode. This metric, which calculates the average price at which each ETH was last moved, now sits at $2,054. The current deviation suggests that many ETH holders are facing unrealized losses.
The market value to realized value (MVRV) ratio has also taken a hit, dropping to 0.93. This indicates an average loss of 7% for all ETH holders across the network. It’s crucial to remember that the realized price reflects the weighted average of all historical transactions, encompassing every ETH holder’s cost basis.
Adding to the woes, Ethereum’s total value locked (TVL) has plummeted to a six-month low of $45.6 billion as of March 12. This marks a staggering 41% decline from its peak of $77 billion in December 2024. Moreover, the total fees paid by users have dwindled to $46.28 million, the lowest since July 2020, signaling waning network engagement.
But wait! There’s a silver lining. Glassnode’s recent analysis suggests that Ethereum’s cost-basis distribution could help identify potential support levels for ETH. With Ether’s recent dip below $1,880, an accumulation of 600,000-700,000 ETH around $1,900 has been observed. This could establish $1.9K as a strong support level if ETH consolidates at current levels.
Anonymous analyst Ninja believes that Ethereum’s floor price lies between $1,600 and $1,900. This range is seen as an “attractive region for commercial money,” with a high swing target set at $2,500. Could this be the opportunity savvy investors have been waiting for?
As the crypto world watches with bated breath, one thing is clear: Ethereum’s journey is far from over. Whether you’re a seasoned trader or a curious newcomer, keep your eyes peeled for what’s next in this ever-evolving saga.
Remember, this article isn’t investment advice. Every move in the crypto world carries risk, so do your research before diving in. Stay informed and stay ahead!
