Ethereum (ETH) has fallen below its realized price of $2,200, a development that historically signals a potential market bottom, according to data from CryptoQuant.

The realized price represents the average cost at which investors acquired their ETH. When the market trades below this level, it suggests that many holders are in unrealized losses, which often triggers panic and selling from less confident participants.

This drop comes as Ethereum lost around 20% of its value within the past week, dropping to a 2-year low of $1,415 amid heightened macroeconomic uncertainty that has rattled the broader crypto market.

CryptoQuant analyst Kriptolik noted that Ethereum’s drop below the realized price, while painful in the short term, has historically been a signal of long-term opportunity.

The analyst noted that similar dips in previous cycles have coincided with the final stages of major downtrends, where investor sentiment is at its lowest and selling pressure peaks.

According to the analyst, periods like these, though uncomfortable, often precede market recoveries. Kriptolik emphasized that long-term holders may interpret this correction as a strategic entry point. If historical patterns hold, this decline could set the foundation for its next upward phase.

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