The worst seems to be over for Ethereum (ETH)because some measures suggest that the bottom has already been reached for the second largest crypto by market capitalization. On this basis, ETH appears to be heading towards a new historical record (ATH)surpassing its current ATH of $4,800.
Ethereum MVRV Shows Bottom Has Been Reached
Data of the Glassnode On-Chain Analytics Platform shows that the lowest price level of Ethereum’s Market Value to Realized Value (MVRV) is $1,687, suggesting that the bottom has already been reached for the crypto token. These MVRV price levels highlight the low or high price level that a token is likely to reach in the near future. market cycle based on unrealized losses or unrealized profits.
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Therefore, Ethereum is unlikely to see a drop below the $1,687 price level and instead seems to be heading towards its market top. It is worth mentioning that Ethereum fell as low as $2,200 after the cryptocurrency crashed. Stock market crash on August 5This price level is close to the MVRV price range of $2,109, which Glassnode highlighted, proving once again that the crypto has bottomed out.
At the same time, the shift to accumulation among Ethereum investors indicates that they are no longer looking to sell their assets but are holding them in anticipation of higher prices. Data Glassnode shows that the percentage of ETH supply The number of shares held on exchanges has dropped significantly, to less than 10%. This figure is important because it potentially reduces the selling pressure on Ethereum and sets it up for a massive rally as long as investors continue to hold it.
Glassnode data shows Ethereum could surge past $5,000 and reach $6,759, which is the highest price MVRV Price Level for crypto at the moment. This price level could mark a market top for Ethereum in this bull run, although crypto analysts like Tyler Durden have predicted that crypto could still reach $10,000.
Other Indicators That Support an Imminent ETH Price Rise
A recent blog post on the Cryptoquant On-Chain Analytics Platform highlighted two indicators that show Ethereum is preparing for its next leg up. One of them is the Taker Buy-Sell Ratio, which calculates the ratio of buyers and sellers of Ethereum. This metric is said to be positive again because Ethereum Bulls regain strength and eliminate all sales pressure bears.
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Ethereum Open Interest (OI) is on the rise again after falling to $7 billion following the August 5 stock market crash. Data According to Coinglass, the OI is currently at 10.81 billion, indicating that leveraged players are returning to the scene. This is important because the trading volume in the derivatives market also has a significant impact on the price of ETH.
At the time of writing, Ethereum is trading at around $2,590, down more than 3% in the past 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart by Tradingview.com
