Ethereum Price May Be Nearing Bottom as On-Chain Metrics Indicate Organic Growth

Ethereum has been trading below its overall cost basis since February at $2.3k, making more holders at a loss.

The recent rally to $1,920 and subsequent reset lower meant sellers still have the upper hand in the market.

According to AMBCrypto, the realized price bands suggest a possible drop to $1.15k if the 2022 bear market cycle plays out once more.

However, some on-chain metrics suggest organic growth and reduced speculative froth.

CryptoQuant's data shows that Exchange Reserves fell from 5 million $ETH in mid-2023 to 3.8 million at the time of writing, signaling both accumulation from holders and easing selling pressure in the market.

This sets up favorable conditions for long-term investors to buy Ethereum on the cheap, as the market price is below the realized price.

Crypto Onchain noted that Ethereum has been quiet over the past quarter, but recently saw a 16% rise in median transaction fees and a 190% surge in new smart contract deployment compared to the 90-day baseline.