Average Cost Basis of ETH Ownership Organized by Wallet Scale
Ether (ETH) is currently on a roll, racking up nearly $1,000 in gains over the past seven days. Over the last 30 days, the cryptocurrency has surged by an impressive 56%.
Despite the persistent skepticism and negative market sentiment, essential data from the on-chain analytics platform CryptoQuant points to crucial ETH realized price zones for holders. These zones signify the average cost basis for ETH owners, depending on their wallet sizes.
Breaking Down the Cost Basis Across ETH Wallets
The average cost basis reveals the average cost of purchasing the same crypto asset at varying prices over time. It essentially tells the average price paid for each cryptocurrency.
According to an analysis by pseudonymous CryptoQuant expert Blitzz, Ether's recent surge has pushed its price beyond the average cost basis for its holders, particularly significant. In bull markets, these levels are essential because ETH tends to revisit them after surpassing them.
The average cost basis for wallets holding balances between 100,000 and 1,000 ETH amounts to around $2,225, while those with 1,000 to 10,000 ETH stand at approximately $2,196. Wallets holding 10,000 to 100,000 ETH average cost basis is about $1,994, while those with assets over 100,000 ETH have a cost basis of roughly $1,222.
ETH Indicates Positive Signals
About a month ago, ETH dipped below its realized price, roughly around the $2,000 mark. At the time, our platform reported that the market faced two possible responses from ETH holders in loss territory—panic-selling or aggressive accumulation leading to strong recoveries. Evidently, ETH has experienced a robust recovery over the last four weeks.
Based on Blitzz's analysis, the closest realized price zone to Ether's current price of $2,500 (with ETH down 3% in the past 24 hours) is $2,225. If ETH continues to fall and eventually dips below this level, the market could face two potential scenarios, including a sharp drop below the $2,100 level.
However, analysts believe there's a higher likelihood that ETH will maintain its bullish trend for several reasons. One reason is that funding rates across all major exchanges have remained slightly positive, signaling bullish sentiment in the market.
Another factor is the diminished sell-side pressure. Ethereum investors have been moving their holdings off centralized exchanges, withdrawing over $1.2 billion in ETH within the past week.
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Sources:
- CoinMarketCap
- CryptoQuant
- Our Platform Reporting
- Blitzz Analysis
- Binance and Bybit Offers (only for specific regions and limited time)
- The recent surge in Ether (ETH) has pushed its price beyond the average cost basis for many of its holders, particularly notable in bull markets, highlighting the potential for further increases in trading value on the blockchain-based finance platform.
- For Ether wallets holding balances between 100,000 and 1,000 ETH, the average cost basis amounts to around $2,225, while those with 1,000 to 10,000 ETH have an average cost basis of approximately $2,196, suggesting that increased investing in Ethereum could lead to continued growth.
- Despite a 3% drop in ETH's price over the past 24 hours, the cryptocurrency currently stands at $2,500, with its closest realized price zone being $2,225, according to the analysis by CryptoQuant expert Blitzz. This indicates that Ether may continue its bullish trend due to positive funding rates across major exchanges and diminished sell-side pressure.
