Ethereum’s native token, Ether (ETH), experienced a drop below $2,000 on March 10th and has since struggled to regain its position above this psychological level. While Bitcoin (BTC) and XRP (XRP) have shown minor recoveries in the past 24 hours, Ether prices have failed to display bullish momentum in the charts.
The altcoin reached a multi-year low of $1,752 on March 11th, and onchain data and technical analysis suggest that the price could drop an additional 15% in the coming weeks.
The current price deviation below $2,000 has significant implications for Ethereum. According to Glassnode, ETH dropped below its realized price of $2,054 for the first time since February 2023.
ETH realized price calculates the average price of each ETH last moved, representing the average cost basis of the total circulating supply. The current drop below the realized price indicates widespread unrealized loss for all ETH holders.
The market value to realized value (MVRV) ratio also dropped to 0.93, indicating a 7% average loss for all ETH holders across the network. However, it is important to note that the realized price reflects the weighted average of all historical transactions, encompassing the cost basis of every ETH holder.
Meanwhile, Ethereum’s total value locked (TVL) dropped to a six-month low of $45.6 billion on March 12th, down 41% from its peak of $77 billion on December 17th, 2024. Additionally, the total fees users paid to use Ethereum fell to $46.28 million, the lowest level since July 2020, signaling weakening network engagement.
In a recent analysis, Glassnode explained how Ethereum’s cost-basis distribution could be useful in identifying potential support levels for ETH. Based on a weekly outlook, Ether’s drop below $1,880 led to an accumulation of 600,000-700,000 ETH around $1,900. This suggests that $1.9K could establish itself as a support if ETH consolidates at current levels, with $2.2K being the potential next resistance.
Anonymous analyst Ninja believes that the floor price for Ethereum remains between $1,600 and $1,900. This range is considered an “attractive region for commercial money,” with a high swing target set at $2,500.
It’s important to note that this article does not provide investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making any decisions.
