7 Siblings added another position during this downturn: it spent about 18.877 million USDT to buy 9,766 $ETH at an average price of about $1,933. Including the 10,792 coins it previously bought at about $2,038, it has spent a total of around 40.88 million USDT during this market move to acquire 20,558 $ETH , at an overall average price of about $1,988.
This trade offers a fairly specific answer: what happens to your cost basis when you keep buying during a downturn? The first batch was bought at $2,038, the second at $1,933, and together they bring the average to around $1,988—lower than the first batch, but not by much. For people following $ETH , these figures show that buying in batches does not quickly bring your cost basis close to the bottom. The earlier you build a position, the more your average price is likely to be held up by the prices you paid before.
7 Siblings chose to keep buying rather than wait for a more certain entry point. There is no right or wrong in this approach; it simply means spreading the cost across a range where further declines are still possible. If $ETH rises back above $1,988, this round of buying will have caught the move. If it continues to fall, a third and fourth purchase would bring the average price down further, but the amount invested would also keep growing.
When I look at these figures, I pay more attention to the change in the average price: the two batches differ by about $105, but together they lowered the average by only $50. Averaging down is a slow process; the further you go, the larger the price drop needed to bring the average down significantly. At its current level, $ETH is still below 7 Siblings’ cost basis. Whether it keeps buying next will tell us more than this single purchase alone.
This trade offers a fairly specific answer: what happens to your cost basis when you keep buying during a downturn? The first batch was bought at $2,038, the second at $1,933, and together they bring the average to around $1,988—lower than the first batch, but not by much. For people following $ETH , these figures show that buying in batches does not quickly bring your cost basis close to the bottom. The earlier you build a position, the more your average price is likely to be held up by the prices you paid before.
7 Siblings chose to keep buying rather than wait for a more certain entry point. There is no right or wrong in this approach; it simply means spreading the cost across a range where further declines are still possible. If $ETH rises back above $1,988, this round of buying will have caught the move. If it continues to fall, a third and fourth purchase would bring the average price down further, but the amount invested would also keep growing.
When I look at these figures, I pay more attention to the change in the average price: the two batches differ by about $105, but together they lowered the average by only $50. Averaging down is a slow process; the further you go, the larger the price drop needed to bring the average down significantly. At its current level, $ETH is still below 7 Siblings’ cost basis. Whether it keeps buying next will tell us more than this single purchase alone.