Is Ethereum’s ‘Cheapness’ a Price Illusion? Only 2 of 5 Critical Signals Expected for a Bottom Have Arrived

Although the Ethereum (ETH) price is trading below its realized price, on-chain data suggests that the bottom has not yet been reached.

The second-largest asset in the cryptocurrency market, Ethereum (ETH), continues to remain in the spotlight for investors due to its recent price action. Current data shared by CryptoQuant indicates that while Ethereum’s current market value could be characterized as “cheap,” some signals for the expected major reversal are still missing. Notably, the gap between the realized price—the average cost at which all investors purchased the asset—and the market price has reached a significant level.

Bottom Signals for Ethereum Price Are Not Yet Complete

According to the shared data, Ethereum (ETH) is currently trading 17 percent below its realized price. Analyses emphasize that only two of the five main signals that historically identify bottom levels have occurred. This reveals that despite the easing of selling pressure, a full capitulation phase has not yet occurred in the market. It appears difficult for a sustained upward trend to begin before that final massive sell-off, where investors unload their assets in a panic, takes place.

When chart data is examined, the Ethereum price remains below the realized price band represented by the blue line. While strong resistance at the $4,000 level is maintained in the upper band, the price’s trend toward the lower bands is noteworthy. Experts remind that for a true bottom formation in ETH, the data needs to be completed. It is noted that while selling pressure has decreased in the current picture, it is still early to say the market has reached its lowest point.