Bitcoin and Altcoins Struggle Amid Declines
Bitcoin and altcoins are struggling to combat the steep declines of the past few months. While BTC has surpassed its previous ATH and is running from record to record, many altcoins have still not surpassed their previous ATH.
One of these was the largest altcoin Ethereum (ETH). ETH did not meet investors’ expectations with its weak performance against Bitcoin. However, CryptoQuant analyst said that ETH offers a buying opportunity.
Stating that ETH is approaching the realized price support, the analyst said that this situation presents a possible buying opportunity.
CryptoQuant analyst noted that Ethereum is approaching its realized price and is approaching the lower band, a strong support level where rallies historically begin.
He argued that this could signal a cooling market and potentially present a buying opportunity if the downtrend continues.
“Historically every major ETH bull run has started near or below the lower band (green), reflecting deep value accumulation phases. Tops generally occurred near or above the upper band (red), indicating overbought market conditions or potential profit-taking areas.
“ETH price is currently approaching the realized price (blue) and approaching the lower band, which may indicate: Market cooling. Possible accumulation opportunity if trend continues downward.”
When ETH trades near or below its realized price, sentiment tends to become bearish or neutral, the analyst said, adding that this often precedes market bottoms.
While the analyst said ETH was nearing the realized price from which the rallies began, he also warned that further declines were possible. A rebound from the lower band could indicate a trend reversal, while a drop below it could confirm continued weakness.
“The closer ETH trades to or below its realized price, the greater the likelihood that market sentiment will turn bearish or neutral. Historically, this has often preceded market bottoms.
“Ethereum is approaching historically important support levels. While it could represent a buying opportunity for long-term holders, caution is still warranted as further declines are possible. A bounce off the lower band could signal a trend reversal, while a break to the downside could confirm further weakness.”
*This is not investment advice.