After experiencing a sharp drop to as low as $2,200 in early August, Ethereum (ETH) has shown signs of recovery. Data from Glassnode suggests that the market value to realized value (MVRV) lowest pricing level for Ethereum is at $1,687, indicating that the crypto has potentially bottomed out. This metric predicts how high or low a token will go in a market cycle based on unrealized profits or losses. With Ethereum unlikely to drop below the $1,687 price level, investors are eyeing a new all-time high for the second-largest cryptocurrency by market cap.
One clear indicator of Ethereum’s bullish momentum is the shift towards accumulation among investors. Glassnode data reveals that the percentage of Ethereum’s supply held on exchanges has plummeted to below 10%. This suggests that investors are more inclined to hold onto their assets in anticipation of higher prices, rather than sell them off. With reduced selling pressure on Ethereum, the stage is set for a potential massive rally in the near future.
While Glassnode data indicates that Ethereum could surge above $5,000 and even reach $6,759, marking a significant milestone for the crypto, some analysts like Tyler Durden believe that the cryptocurrency could soar to $10,000. The highest MVRV pricing level currently stands at $6,759, signifying a potential market top for Ethereum in this bullish cycle.
Recent analysis from the onchain analytics platform Cryptoquant highlights two key metrics that signal Ethereum’s bullish trajectory. The Taker Buy-Sell Ratio, which measures the ratio of Ethereum buyers to sellers, has turned positive once again, indicating a resurgence in bullish sentiment and a weakening selling pressure from bears. Additionally, Ethereum’s open interest (OI) is on the rise, currently standing at $10.81 billion after dropping to $7 billion post the August 5 market crash. This uptick in OI suggests that leveraged players are re-entering the market, further bolstering Ethereum’s positive outlook.
Ethereum appears to have weathered the storm and is now primed for a potential rally towards a new all-time high. With key metrics and market indicators pointing towards a bullish trajectory, investors eagerly await Ethereum’s next price movements in anticipation of significant gains.
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