Although Ethereum’s exchange outflow and inflow reached a five-year and seven-year low, other metrics displayed that ETH could witness bearish price action only in the near future.
ETH’s price remained above its realized price, which hovered between $1,500 and $1,600.- Ethereum’s supply on exchanges declined while its supply outside of exchanges shot up.
As the market is witnessing less activity, Ethereum’s [ETH] price has continued to stay under the $1,900 mark. Therefore, investors might want to accumulate 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, a look at a few metrics suggested that buying pressure around ETH was relatively weak.
This indicates good buying opportunities
A CryproQuant analyst and author recently posted an analysis that highlighted a metric to mention when investors should stockpile ETH. As per the analysis, Ethereum’s realized price hovered between $1.500 and $1,600 from January to August 2023. This is the average “break-even” price at which Ethereum holders make no money or lose money.
When ETH‘s price falls below the realized price and quickly recovers, it indicates that the market believes Ethereum is undervalued. Thus, there were three buying opportunities year-to-date, after which the token’s price rallied.
Source: CryptoQuant
According to CoinMarketCap, at press time, ETH was trading at $1,840.24 with a market capitalization of over $221 billion. This meant that at press time, ETH’s price was above its realized price, suggesting that it was not undervalued.
Interestingly, Glassnode Alerts’ tweet pointed out that ETH’s exchange outflow reached a five-year low of 6,045.499 ETH.
At first glance, this looked bearish, but upon a thorough check, a different story was revealed. Not only did exchange outflow, but ETH’s exchange inflow also reached a seven-month low. A drop in both metrics clearly indicated that investors were reluctant to trade ETH.
Source : [Ethereum: Traders looking for a green signal should read this](ambcrypto.com/ethereum-traders-looking-for-a-green-signal-to-buy-eth-should-read-this/) by Dipayan Mitra - AMBCrypto by Dipayan Mitra / August 16, 2023
