Ethereum’s price has been on a rollercoaster ride for the past few weeks, hovering between the $2,500 and $2,750 range. The altcoin has struggled to make a mark over the past week, dropping to $2,400 at one point.
While the price performance of the Ether token has not been inspiring in recent months, one analyst has made a case to support the position that the second-largest cryptocurrency may still be in an uptrend.
Here’s Why ETH Price Keeps Rising
At a glance mail On the CryptoQuant platform, an analyst with the pseudonym Crypto Sunmoon made an interesting claim about the price of Ethereum. According to the analyst, the price of the Ether token is still in an uptrend despite its continuous decline over the past few months.
The rationale behind this claim is that the price of ETH has managed to stay above its realized price, which is currently acting as a major support on the chain. In context, the realized price of a cryptocurrency refers to the average price at which all circulating coins were last moved.
Source: CryptoQuant
The realized price metric 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 means that most asset holders are making a profit, which creates a bullish sentiment in the market.
According to the Quicktake analyst, Ethereum’s ability to maintain its position above the realized price bodes well for the altcoin market as a whole. From a historical perspective, Ethereum’s strong price action against the realized price seems to be a catalyst for a bullish altcoin market.
Ethereum price in August
At the time of writing, ETH is trading at around $2,517, reflecting a drop of just 0.6% in the past 24 hours. However, this small price change doesn’t quite tell the story, as Ethereum has fallen to $2,440 in the past day.
Meanwhile, the altcoin has fallen by about 9% in the past week, according to data from CoinGecko. This performance over the past seven days underscores the contradictions and struggles that Ethereum’s price has been experiencing in the past few weeks.
In August, Ethereum’s price dropped more than 23%, falling below $3,000 as early as August 2. After recovering from a multi-month low of $2,200, the altcoin’s price has since stabilized between $2,500 and $2,750. However, Ethereum retains 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
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