- Ethereum briefly dropped to $1,385 today — its lowest level since October 2023.
- ETH is now trading below its Realized Price, signaling widespread holder losses and caution.
- Historically, ETH dipping under Realized Price often marks bottom zones before strong recoveries.
Ethereum’s price has faced significant pressure over the past week. After failing to stay above the key daily level of $1,861, the cryptocurrency declined nearly 13%. The downward trend extended into this week, with Ethereum falling another 7% by Tuesday. During the early hours of Wednesday, it briefly touched a low of $1,385, a level not seen since October 2023, before recovering slightly to around $1,470 by midday.
This continued decline has drawn concern from market participants who are reassessing Ethereum’s short- and long-term position. A central focus of this analysis has been Ethereum’s Realized Price, an on-chain metric that offers insight into the average acquisition cost of ETH across the blockchain.
Realized Price is calculated by averaging the last transfer price of every ETH coin on the network. When Ethereum trades below this level, it often signals bearish sentiment, with many holders seeing unrealized losses. This condition can create additional selling pressure.
Realized Price Breach and Its Implications
According to CryptoQuant contributor and on-chain analyst theKriptolik, Ethereum has now fallen below its Realized Price. This movement has noteworthy implications for the broader market. As the Kriptolik explained:
The Realized Price often acts as a psychological support or resistance level. Trading above it typically signals investor confidence, while trading below it suggests caution and possible resistance. The analyst outlined three key consequences of this breach.
Each ETH is evaluated based on the price it was last transferred at. When you average out all those prices, you get the Realized Price. This gives us a much more ‘realistic’ sense of what the average investor paid for their ETH, and it often paints a very different picture from the current market price.”
First, trading below Realized Price often results in increased selling from holders facing losses. Second, it is frequently associated with the capitulation phase, a period characterized by declining confidence and widespread asset sell-offs. Finally, historical patterns indicate that when Ethereum falls below this level, it has often coincided with market bottoms, which later led to significant recoveries.
Potential Bottom Zone for Ethereum
The analyst emphasized that “past data shows that whenever ETH dips below its realized price, it’s often coincided with long-term bottom zones. These periods have consistently been followed by strong recoveries, making them strategic accumulation points for long-term investors.”
While the recent drop highlights market instability in the short term, historical trends suggest this may present an opportunity for accumulation. Ethereum has previously experienced significant recoveries following similar moves below its Realized Price.
At the technical level, Ether trades below $1,500 and the 100-hour Simple Moving Average. Immediate resistance stands at $1,475, with stronger barriers at $1,500 and $1,520. A break above $1,520 could spark a rally toward $1,560. Sustained momentum may lift prices to $1,620 or even $1,650.
However, failure to break past the $1,520 resistance could result in a renewed decline. Immediate support may emerge near $1,410, followed by more significant levels at $1,385 and $1,320. Should these supports fail to hold, the next targets on the downside include $1,240 and $1,120.
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