Analysis of differing average costs of Ethereum across wallet sizes reveals potential support levels, influencing trading strategies.
Understanding Cost Basis and Market Support
CryptoQuant's report, led by analyst BlitzzTrading, highlights Ethereum's realized price zones, indicating potential support. Wallets holding over 100,000 ETH show a low average cost basis of $1,222, suggesting economic advantages during price fluctuations.
> "These levels are crucial, especially in bull markets, because ETH sometimes revisits them after surpassing them," said BlitzzTrading, Analyst, CryptoQuant.
Divergence in Wallet Sizes
Wallet sizes from 100 ETH to over 100,000 ETH illustrate divergent average cost basis. Ethereum trades near $2,500, showing a 56% surge over 30 days. This data highlights the importance of realized price zones in market analysis.
The Impact of Large Holders
The financial impact reflects strong holder support, though with the potential for profit-taking. The realized price levels serve as markers for potential buying zones during declines, indicating increased buying pressure at these levels. This analysis indicates that large holders' profit buffers offer greater resilience against market volatility.
> "These key price levels serve as important support and resistance zones for traders, indicating where large holders are likely to react, increasing the chances of significant price movement around these points."
Analyzing realized price levels of large holders of Ethereum can help understand market behavior and support during fluctuations, which can influence trading decisions.
