Ethereum price has been on a seesaw in recent weeks, oscillating between the $2,500 and $2,750 area. The altcoin struggled to gain traction last week, with its value dropping as low as $2,400 at one point.
Although the price performance of the Ether token has not been encouraging in recent months, one analyst has put forward an argument to support the position that the second-largest cryptocurrency could still be in an uptrend.
Here’s Why ETH Price Has Never Stopped Being Bullish
In a Quicktake article on the CryptoQuant platform, an analyst under the pseudonym Crypto Sunmoon made an interesting statement about the Ethereum price. According to the expert, the price of the Ether token is still in an uptrend despite its sustained decline over the past few months.
The reason behind this claim is that the price of ETH 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 provides insight into the general sentiment and behavior of market participants, especially long-term investors. Typically, when the actual price of an asset is higher than the realized price, it implies that most holders are making profits, leading to bullish sentiment in the market.
According to the Quicktake analyst, Ethereum’s ability to hold its position above realized price bodes well for the broader altcoin market. From a historical perspective, strong Ethereum price action relative to realized price appears to be a catalyst for the altcoin bull market.
Ethereum Price in August
At the time of writing, the price of ETH is sitting around $2,517, which is only a 0.6% drop over the past 24 hours. This negligible price change doesn’t tell the whole story, however, as the price of Ethereum has fallen as low as $2,440 over the past day.
Meanwhile, the altcoin’s value has dropped by nearly 9% in the past week, according to data from CoinGecko. This performance over the past seven days underscores the inconsistencies and struggles of Ethereum’s price in recent weeks.
In August, the price of Ether fell 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 consolidated between $2,500 and $2,750. Nevertheless, Ethereum maintains its position as the second-largest cryptocurrency, with a market cap of over $301 billion.
The Ethereum price on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from Unsplash, chart from TradingView
