Buying Pressure for Ethereum Decreases, but Whales’ Trust in ETH Remains Unshaken

• When the price of ETH falls below the realized price and quickly recovers, it indicates that Ethereum’s value is low.
• At the time of writing, ETH is trading at a price of $1,826 with a market value of over $221 billion. This indicates that the price of ETH is above the realized price.
• During a general market slowdown, ETH metrics indicate that investors may have already started accumulating. The token’s supply on exchanges has decreased in the past month, but its supply outside of exchanges has increased.

Buying pressure for Ethereum has decreased, and recent data shows traders’ reluctance; is it a good time to accumulate Ethereum?

Buying Pressure for Ethereum Decreased and Reluctance Increased

Due to less market activity, the price of Ethereum has continued to stay below $1,900. Therefore, investors may consider accumulating more ETH before the token enters its next bull rally.

Interestingly, CryptoQuant’s latest analysis sheds light on when investors should consider accumulating the altcoin. However, when looking at several metrics, it is observed that buying pressure around ETH is relatively weak.

A CryptoQuant analyst pointed out a metric that highlights when investors should consider accumulating ETH. According to the analysis, Ethereum’s realized price fluctuated between $1,500 and $1,600 from January to August 2023. This is the average “cost point” where Ethereum holders did not make or lose money.

When the price of ETH falls below the realized price and quickly recovers, it indicates a belief that Ethereum’s value is low. Therefore, there have been three buying opportunities since the beginning of the year, and after these opportunities, the price of the token increased.

At the time of writing, ETH is trading at a price of $1,826 with a market value of over $221 billion. This indicated that the price of ETH was above the realized price, which did not mean Ethereum was undervalued.

Interestingly, Glassnode Alerts noted that the off-exchange flow of ETH reached its lowest level in five years, amounting to 6,045,499 ETH.

At first glance, this seemed bearish, but a more detailed examination revealed a different story. Not only the off-exchange flow, but also the on-exchange flow of ETH reached its lowest level in seven months. The decrease in both metrics clearly indicated investors’ reluctance in ETH trading.

Should Investors Start Accumulating ETH?

During a general market slowdown, ETH metrics indicate that investors may have already started accumulating. The token’s supply on exchanges has decreased in the past month, but its supply outside of exchanges has increased. Additionally, the ETH supply held in the top addresses has also increased, reflecting the confidence of whales in the token.

Considering that ETH has relaxed below $1,900, investors may consider increasing their accumulation in order to profit from a bull run. This could be due to the likelihood of ETH predominantly sustaining slow price movements in the short term.