Does surpassing the realized price of Ethereum pave the way for a new rise?
The realized price in the cryptocurrency market is an important indicator, as it represents the average cost of acquiring all traded currencies. When an asset trades at a price higher than its realized price, this indicates a positive market where the majority are making profits, while trading below it reflects a phase of losses and negative sentiment among investors.
According to data from the Binance platform, Ethereum is currently trading above the $1900 level, which is higher than its realized price. This is attributed to significant activity from long-term investors, along with active deposits and trading movements from accumulation addresses.
Although the market recovery began in mid-April, the notable increase in the price of Ethereum occurred only last week, reflecting renewed confidence in the asset by large investors. The exit of large amounts of Ethereum from Binance – the largest exchange by trading volume – indicates a accumulation behavior from investors, enhancing the likelihood of the upward trend continuing.
When the value of Ethereum rises above its realized price, especially for active deposit addresses on Binance, it generates greater confidence in the market and stimulates positive trading. It also allows for profit-taking without negatively impacting the upward momentum.
Currently, Ethereum is trading at $2525, with a daily increase of 5.88%. Despite this rise, trading volume has declined by 18.44% to reach $33.79 billion, indicating relative calm after a strong movement.
The next resistance is centered near $2600, and if the price can break this barrier, we may see Ethereum testing the $2800 level in the upcoming period.
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