Ethereum Price Takes a Nosedive: Are Bulls in Trouble?
What Happened to Ethereum?
So, in a plot twist that even the best soap operas would envy, Ethereum’s price took a dive in early February. It plummeted over 30% in just a week, sinking down to a low of $1,850 on February 6. Yikes! Looks like our buddy Ethereum is having a rough time in this bearish market.
Whale Cost Basis: The Shocking Truth
Here’s where the drama thickens! An on-chain analyst, MorenoDV, recently disclosed that Ethereum’s value has dropped below the cost basis for a lot of investors. This isn’t just some random observation; it’s based on the Realized Price by Balance Cohorts metric, which tracks the average cost basis for Ethereum holders. Basically, it shows us where different groups of investors are either chillin’ in profit or sweating bullets in losses.
The Big Guys Are Getting Nervous
The most jaw-dropping part? The price dipped below the average cost for the big fish in the crypto pond — those whale holders with over 100,000 ETH. Their cost basis hovers around $2,074. Historically, when the price has busted through these levels, it either led to a spectacular comeback or, well, a plummet into the abyss. No pressure, Ethereum!
What Happens Next?
Now, this is where it gets really interesting. If Ethereum manages to crawl back up, analysts reckon it’ll face some serious resistance in the $2,534 to $2,675 range. But let’s be real: the ultimate line in the sand is the whale cost basis at $2,074. If Ethereum can reclaim this level, we might just witness a price rebound, complete with fireworks and confetti. But if it can’t pull it off within 30 to 45 days? We might be looking at a free fall down to the $1,800 mark or even lower!
Current Situation
As of now, Ethereum is dancing around the $2,030 mark, showing a little glimmer of hope with a 7% increase in the last 24 hours! Will it stay in the green? Only time will tell, but one thing’s for sure — this rollercoaster ride isn’t over yet!