Ethereum’s MVRV Hits 1.97 — Can Bulls Hold Their Ground?

Ethereum (ETH) stands out with one of the best price performances from last week as a general bullish sentiment swept across the crypto ￰0￱ this period, the dominant altcoin gained by 9.06% with its prices briefly entering the $4,700 price ￰1￱ the majority of investors hold green positions, on-chain data support price movements to remain bullish, albeit only for the short ￰2￱ Reading: Ethereum Validator Slashing Puts Cardano’s Resilience In Focus – Here’s Why Ethereum MVRV Suggests Positive Momentum, Eyes On 2.4 Barrier Prominent crypto analyst Burak Kesmeci has recently shared a potentially impactful on-chain analysis on the Ethereum ￰3￱ data from Glassnode, Kesmeci has observed that the Ethereum MVRV ratio has recently reached 1.97, edging closer to the historically significant 2.4 bearish ￰4￱ context, the Market Value To Realized Value ratio compares an asset’s current market value to the average price at which all coins last moved on-chain.

A rising MVRV typically indicates growing unrealized profits among holders, while extreme levels can suggest overheated conditions where profit-taking may trigger corrections. Therefore, at 1.97, Ethereum’s MVRV suggests that investors are presently sitting on substantial unrealized profits. However, Kesmeci explains that the 2.40 zone is historically associated with market ￰5￱ is because past cycles have shown that when the ratio surpasses 2.40, traders begin to take significant profits, resulting in potential price pullbacks. Interestingly, there is even a more critical threshold at 3.20, which Kesmeci has described as a “very, very hot” zone, i.

e, levels where market euphoria has often ￰6￱ is seen during bull runs in 2017 and 2021 when the ratio spiked far above the 3.20 mark, coinciding with Ethereum’s dramatic price rallies and subsequent ￰7￱ the present MVRV at 1.97, Kesmeci’s analysis suggests Ethereum’s positive momentum remains in a safe zone, and market enthusiasts may yet anticipate further price gains for the time being. However, considering the present high levels of bullishness, investors should be on alert for a potential MVRV cross above 2.40, which is expected to induce significant selling ￰8￱ Reading: Altcoins Flash Red Flag As Market Top Looms — Details Ethereum Market Overview At press time, Ethereum trades at $4,665, reflecting a minor decline of 0.2% in the past 24 hours.

However, the prominent altcoin is posting significant gains on larger timeframes with price increases of 8.75% and 3.40% on the weekly and monthly charts, ￰9￱ performance suggests that Ethereum’s broader uptrend remains intact, even as it faces short-term fluctuations. Meanwhile, Ethereum’s daily trading volume has now declined by 14.42% indicating a temporary cooling in market activity, even as underlying momentum continues to support the asset’s upward ￰10￱ image from Pexels, chart from Tradingview