Ethereum’s Price Dip May Signal Accumulation Phase
Ethereum’s price has dipped below $1,600, but signs suggest a potential accumulation phase. Analysts believe this could be a good time for investors to buy.
According to CryptoQuant contributor abramchart, Ethereum (ETH) is near its realized price of about $1,585. This level frequently enough marks the start of major rallies. Historically, when ETH hits this price, it signals a buying possibility. The realized price is a key metric showing the average cost of all ETH in circulation. When ETH reaches this level, it often triggers a rebound. This price point has historically led to significant price increases.
However,technical indicators show mixed signals. ETH is below its 20-day moving average and far from its 200-day average, indicating a strong downtrend.The Relative Strength Index (RSI) is just under 40, showing weak momentum but not extreme overselling. Bollinger bands are tight, hinting at low volatility. A big price move could be on the horizon.
ETH might find support between $1,450 and $1,550.
On the technical side, ETH faces resistance around $1,670, with stronger pressure at $1,930.The daily Bollinger bands are compressed, suggesting low volatility but a potential breakout.
Fundamentally, Ethereum’s layer 1 value capture has weakened since the Dencun upgrade. Scalability has improved, but layer 2 adoption has reduced fees. Santiment notes that ETH transaction fees are at 5-year lows, averaging $0.168. This could be a contrarian signal, as historically, low fees under $1 have preceded price rebounds.
Traders are sensitive to macroeconomic news, delaying ETH activity until there’s more clarity. Despite the pullback, ethereum’s development remains strong, potentially setting the stage for a surprise rebound.
