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Over the past few weeks, the Ethereum price has struggled to maintain its bullish momentum from early May. The altcoin has been stuck within a consolidation range, jumping between the $2,500 and $2,700 region.
While the Ethereum price sat mostly above the $2,600 level throughout the past week, a market-wide downturn saw the altcoin’s value fall toward $2,400 on Friday, June 6. While the price of ETH has not fully recovered yet, it has at least managed to reclaim the $2,500 level over this weekend.
Binance Realized Price Critical For ETH
In a Quicktake post on the CryptoQuant platform, an on-chain analyst with the pseudonym Crazzyblockk revealed that the Ethereum price exhibited an interesting reaction around the $2,392 price level on Friday. The crypto pundit noted that this reaction is not random, as it occurred at a significant on-chain level — the realized price of Binance user deposit addresses.
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The relevant indicator behind this on-chain observation is the ETH Realized Price metric, which tracks the average cost basis of holders across different cohorts, including the Binance User Deposit Address, OKX User Deposit Address, Addresses Frequently Received From CEX, and Highly Active Addresses.
Crazzyblockk highlighted the realized prices across these cohorts, with that of the Binance User Deposit Address standing around $2,392; OKX User Deposit Address at $2,706; Addresses Frequently Received from CEX at $2,532; and Highly Active Addresses with a realized price of $2,513.
As seen during the latest dip, the $2,392 realized price represents a major on-chain support level, as it is the cost basis of several Binance user deposit addresses. “The market’s bounce from this level highlights the impact of Binance user behavior on ETH’s current price structure,” Crazzyblockk added.
Crazzyblockk also noted that while $2,500 is an average realized price across all the highlighted cohorts, an important detail should not be overlooked — Binance’s influence on the general market. The crypto pundit explained that Binance holds the highest ETH reserves among all centralized exchanges and has strong dominance in ETH on-chain movement.
For this reason, the analyst inferred that the realized price of Binance user deposit addresses ($2,392) is a crucial level to watch in ETH’s market structure. As a result, this level should be considered whenever financial decisions on Ethereum are about to be made.
Finally, most investors would be in profit if Ethereum’s price stays above $2,500, thereby relieving the market of downward pressure, as investors are less likely to sell when in profit. On the flip side, a drop below $2,500 could result in a wave of unrealized losses for the altcoin’s holders, potentially triggering a sell-off and, consequently, an increase in downward pressure.
Ethereum Price At A Glance
As of this writing, the price of ETH stands at around $2,523, reflecting a 1.12% jump in the past 24 hours.
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Featured image from Unsplash, chart from TradingView
