Is Ethereum Price In A Bullish Trend? Analyst Offers Supportive Evidence

August 31, 2024 CryptoExpert Politics

The Ethereum price has been on a seesaw motion in the past few weeks, oscillating between the $2,500 and $2,750 zone. The altcoin struggled to make a mark in the past week, as its value fell to as low as $2,400 at some point.

While the price performance of the Ether token has been uninspiring in recent months, an analyst has put forward an argument to support the position that the second-largest cryptocurrency might still be in a bullish trend.

Here’s Why The ETH Price Never Stopped Being Bullish

In a Quicktake post on the CryptoQuant platform, an analyst with the pseudonym Crypto Sunmoon made an interesting claim about the Ethereum price. According to the pundit, the price of the Ether token is still in a bullish trend despite its sustained decline over the past few months.

The rationale behind this claim is that ETH’s price has managed to stay above its realized price, which is currently acting as a crucial on-chain support. For context, the realized price of a cryptocurrency refers to the average price at which all coins in circulation were last moved.

Source: CryptoQuant

The realized price metric offers insight into the overall sentiment and behavior of market participants, particularly long-term investors. Typically, when the actual price of an asset is above the realized price, it implies that most holders are in profit, which provokes a bullish feeling in the market.

According to the Quicktake analyst, the ability of Ethereum to maintain its position above the realized price bodes well for the general altcoin market. From a historical standpoint, a strong Ethereum price action against the realized price seems to be a catalyst for the altcoin bull market.

Ethereum Price In August

As of this writing, the price of ETH stands at around $2,517, reflecting a mere 0.6% decline in the past 24 hours. This negligible price change doesn’t quite tell the story, though, as the Ethereum price has fallen to as low as $2,440 in the past day.

Meanwhile, the altcoin has declined in value by nearly 9% in the previous week, according to data from CoinGecko. This last seven-day performance underscores the inconsistencies and struggles of the Ethereum price in the past few weeks.

In August, the price of Ether has fallen by more than 23%, losing the $3,000 level as early as August 2. After recovering from the multi-month low of $2,200, the altcoin’s price has since been consolidating between $2,500 and $2,750. Nevertheless, Ethereum retains its position as the second-largest cryptocurrency, with a market capitalization of more than $301 billion.