Ethereum Price Update: Can It Hold $1.5k or Dip Further?

The Ethereum price has landed in the spotlight again, and not for the best reasons. After tagging a key level that historically marked market bottoms, ETH’s movement has raised hope and caution among investors. ETH is currently trading at $1,591.13, which reflects a 7% growth from the last 24 hours.

Realized Price: A Historic Marker Resurfaces

Ethereum’s price has slipped below its “realized price.” That might sound technical, but it simply means that ETH is now trading below the average cost most investors paid. Historically, this zone has acted as a bottom point where prices reverse and begin to climb again.

In previous cycles, such as 2018 and 2020, this level kicked off effective recoveries. Long-term holders see this as a great buying opportunity. But there’s a flip side. If ETH struggles to reclaim that level, it could act as resistance and even spark more panic selling in the short term.

Market Mood: ETH Feels the Global Pressure

Even as on-chain signals suggest a possible rebound, Ethereum, like many risk assets, is reacting to global developments. Recent updates on tariffs from the Trump camp have influenced both the stock and crypto markets. In this shaky environment, macro events are playing a much significant role than usual.

This means that even if Ethereum is at a historically strong buying point, a true rebound may only happen when the broader economic outlook improves.

Institutions Pull Back: 6 Weeks of Outflows

U.S.-based spot ETH ETFs have seen outflows for six straight weeks. That’s a clear sign that institutional investors are currently cautious about the Ethereum price.

And when institutions aren’t buying, it’s usually a sign that they’re expecting more downside or are waiting for clearer signals before jumping back in.

User Activity: A Flat Line for Four Years

Another concern is Ethereum’s stagnant user activity. Analyst Stacy Muur pointed out that the number of active addresses on the Ethereum network has remained flat for the last four years. While some argue that users have simply moved to Layer 2 solutions like Arbitrum and Optimism, the lack of visible growth on Ethereum’s base layer could limit its near-term upside.

If fewer people are actively using the network, it’s harder to justify a strong rebound in price, at least from a fundamental point of view.

What’s Next for Ethereum’s Price?

So, where does all this leave us? Ethereum recently dropped below $1.5k, its lowest point in two years, and is now 64% down from its cycle peak of $4k. Some analysts believe that if macro uncertainty continues, ETH could drop further, possibly testing the $1k mark.

But it’s not all doom and gloom. If we take the long view, Ethereum has bounced back every time it’s hit this realized price zone. For long-term believers, this could still be a solid accumulation point, especially if macro conditions turn more favorable.

Final Thoughts

The Ethereum price is walking a tightrope right now. While history hints at a potential rebound, the broader market is still dealing with global uncertainties. Long-term holders may see opportunity, but short-term traders should be ready for more turbulence. As always in crypto, patience and perspective are key.

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