Ethereum Price: Binance Metric Holds Key to ETH’s Future
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Ethereum's price recently consolidated between $2,500 and $2,700, briefly dipping to $2,400 before recovering to around $2,523. A key factor influencing this price movement is the Binance realized price, a metric tracking the average cost basis of ETH holders on Binance. According to on-chain analyst Crazzyblockk, the Binance user deposit address realized price of approximately $2,392 acted as significant support during the recent dip. This level is crucial because Binance holds substantial ETH reserves and significantly influences on-chain activity. Other realized prices included OKX at $2,706, Addresses Frequently Receiving from CEX at $2,532, and Highly Active Addresses at $2,513. While a general average realized price across all cohorts is around $2,500, Binance's influence makes its realized price a particularly important indicator. The market's reaction to the $2,392 support level underscores Binance's impact on Ethereum's price structure. Staying above the $2,500 average realized price keeps most investors in profit, reducing selling pressure. Conversely, falling below $2,500 could trigger unrealized losses, potentially leading to a sell-off and further price declines. Therefore, the Binance realized price serves as a critical on-chain metric to watch for insights into the future price direction of Ethereum. The analyst suggests considering this metric when making financial decisions related to Ethereum.
(Source: https://www.newsbtc.com/news/ethereum/ethereum-price-could-hinge-on-this-binance-metric/)