Recent metrics indicate that Ethereum (ETH) may have already hit its bottom, paving the way for a potential surge towards a new all-time high (ATH) beyond the current ATH of $4,800. The market value to realized value (MVRV) lowest pricing level for Ethereum is at $1,687, signaling that the crypto token may have bottomed out. These MVRV levels provide insights into how high or low a token may go in a market cycle based on unrealized losses or profits. With Ethereum unlikely to drop below $1,687, it appears to be on a trajectory towards a market top.
Furthermore, a shift to accumulation among Ethereum investors is evident as the percentage of ETH supply held on exchanges has decreased to under 10%. This reduction in supply on exchanges suggests that investors are now more inclined to hold onto their assets in anticipation of higher prices, rather than sell them. With reduced selling pressure on Ethereum, the stage is set for a potential rally in the near future.
Data from Glassnode suggests that Ethereum could potentially surpass $5,000 and even reach as high as $6,759, currently the highest MVRV pricing level for the crypto. While this level could signify a market top for Ethereum in the current bull run, some analysts, such as Tyler Durden, believe that the crypto may still have the potential to reach $10,000. Additionally, recent insights from the onchain analytics platform Cryptoquant highlight positive indicators for Ethereum’s upward trajectory.
The Taker Buy-Sell Ratio, which measures the ratio of Ethereum buyers to sellers, is showing positive signs as bullish sentiment strengthens, while selling pressure from bears diminishes. Moreover, Ethereum’s open interest (OI) has seen a rebound, climbing back to $10.81 billion from a low of $7 billion after the market crash on August 5. This increase in OI suggests that leveraged players are re-entering the market, further supporting Ethereum’s upward momentum.
Ethereum appears to be in a favorable position for a potential rally towards a new ATH, with various metrics and market dynamics pointing towards a bullish outlook for the crypto token. However, as with any investment in the volatile crypto market, it is important to exercise caution and conduct thorough research before making any decisions.
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