The Ethereum (ETH) market recorded a modest 4.1% increase last week amid a general price rebound in the broader crypto market. However, the well-known Altcoin and the second-largest cryptocurrency continue to trade $2,600, which has served as an efficient price range for the past month. Interestingly, recent technical data shows that despite the ongoing price struggle, Ethereum is likely to experience significant price increases in the current market cycle.
2.25 MVRV appears as an important exit for Ethereum investors – Analysts
In a post on July 4th, popular market analyst Burak Kesmeci shares some interesting insights into the Ethereum market. Using TradingView data, Kesmeci shows strong market uncertainty despite ETH retaining MVRV value between 1.20-1.25, and investors maintaining small profits.
As the name suggests, the MVRV (market value to realised value) ratio compares the current market value (MV) of an asset with the realised value (RV). This reflects the average price the asset last moved in the chain. This is an important indicator used to assess whether an asset is overvalued or undervalued. MVRV>1 indicates that investors are profiting and holding unrealized profits, indicating important possibilities for profiting, whereas MVRV <1 suggests that investors are offering a good time for accumulation due to their assets being undervalued.
As mentioned earlier, current MVRV levels between 1.20-1.25 are currently profitable by Ethereum investors. However, Burak Kesmeci says 2.25 is emerging as a key psychological and technical level in the current cycle. Analysts explain that at this point many investors chose to lock in profits during the major price rise in Q4 2024, effectively closing the then-Ethereum rally.
Kesmeci says it is unclear whether Ethereum’s MVRV will return to such levels, but the current ranking indicates that AltCoin is far from the peak price level in the current market cycle.
ETH Price Overview
At press time, Ethereum trades at $2,520 on the daily chart, reflecting a price loss of 1.35%. Meanwhile, asset trading volume fell 9.8%, valued at $162.9 billion.
According to data from CONCINCODEX, sentiment in the general Ethereum market remains neutral, but with 73 fears and greedy indexes, indicating a strong level of greed. CONCODEX analysts predict that Ethereum will be able to trade around $2,737 within the next month, potentially returning to local peak levels of nearly $4,099 over the next three months, suggesting a bullish mid-term outlook despite current cautious sentiment.
Pexels featured images, TradingView charts
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