Ethereum experienced a decline, dropping to $2,956 on Tuesday, 18 November. However, it has since increased by 5.4% in just one day to hit $3.2k. The Crypto Fear and Greed Index showed a reading of 15 as Bitcoin surged back above the $90k threshold. It seems that despite this minor increase, the general sentiment remains chaotic. Market participants are expected to see any price rebounds as an opportunity to offload their positions, lock in gains, or exit without a loss. Even with the widespread negativity in the market, Ethereum accumulation addresses showed resilience. Curiously, their ETH balances have kept increasing even amid the recent chaos. According to the most recent information, the realized price for accumulation addresses is currently $2,880. The 14-day moving average of the netflow to exchanges metric is still indicating a downward trend. Even with the current selling pressure, some holders, particularly institutional investors, have continued their accumulation efforts – a positive sign.
Be clear – The daily chart shows a downward trend, whereas the weekly chart hints at a possible pullback to $2.7k. The realized price metrics offered valuable insights into the positioning of key support levels. The realized price indicates the average cost basis in the market. By utilizing these metrics on addresses sorted by balance, we can pinpoint the realized prices of particular cohorts. At press time, the approximately 100k holder addresses recorded a realized price of $2,600, while other significant cohorts were grouped within the range of $2,790 to $2,920.
The overall market’s realized price reached $2,316, marking yet another important support level. In April’s retracement, Ethereum’s price fell notably beneath the realized price, reaching a low of $1,473. This shows that although the established price support levels are reliable, they do have their shortcomings. Market participants must be prepared to make acquisitions at those points if their approach requires it, but they should also be ready to withdraw at an acceptable loss if their forecasts do not materialize. The 1-day price chart has evidently been showing a downward trend as mentioned earlier. The continuous pattern of declining peaks and troughs that has been in place since September shows no signs of change.
The price action observed between May and July indicates that the 2,521 level acts as an additional support level. The support levels extend from $2.9k to $2.3k. The likelihood of any of them halting the downward trend for an extended period, or triggering a reversal, is still unclear. Traders and investors should keep an eye on 2.7k, which signifies the 78.6% weekly Fib retracement level, as well as 2.5k, an important level derived from the price action seen in May.