Ethereum is edging toward a critical price level that has historically signalled long-term buying opportunities, according to recent on-chain data from CryptoQuant.
Analysts observe that previous ETH bull runs typically began when the asset traded near or below the lower accumulation band—a zone seen as a marker of deep value. With Ethereum once again approaching this band, signs suggest the market may be cooling off and potentially entering a fresh accumulation phase.
Adding to the significance of this trend, ETH is also hovering close to its realized price, a widely-watched support level. This threshold often marks a shift in market sentiment from bullish to neutral or bearish and has historically coincided with market bottoms. For long-term investors, this convergence of indicators presents a potential entry point.
However, analysts remain cautious. While proximity to the lower band could offer a favourable setup for accumulation, a further drop cannot be ruled out. A bounce from this level might signal the beginning of a trend reversal, but a decisive breakdown could confirm prolonged market weakness.
Meanwhile, Ethereum’s fundamentals present a more complex picture. According to an April 16 report from Binance Research, Ethereum’s value capture on layer one has weakened significantly since the Dencun upgrade. Although the upgrade boosted scalability, thanks to the introduction of data blobs that increased throughput by nearly 16 times, it also led to a sharp decline in L1 fee revenues. With more users migrating to cheaper and faster layer two solutions, ETH’s status as “ultrasound money” has taken a hit, diminishing its competitive edge against rivals like Solana and BNB Chain.
In a related development, on-chain data hints at a possible bullish trend reversal for Bitcoin. In an April 13 update, CryptoQuant analyst Joao Wedson highlighted the narrowing gap between Bitcoin’s futures and spot prices on Binance—the perpetual-spot gap. This shrinking spread may signal strengthening market sentiment and could precede an upward move in BTC.
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