Ethereum MVRV Score Signals Cooling Market Momentum – Time To Buy?

Semilore Faleti

9 months ago

2 mins read

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In line with the general crypto market, Ethereum (ETH) produced a positive price performance in the past day with a significant 4.50% gain, according to data from CoinMarketCap. Following this price rise, the altcoin moved its weekly profits to around 1.35% after what has been a turbulent trading week. However, certain market indicators signal the ETH market remains far from a bullish breakout.

Ethereum MVRV Far From Critical Bullish Level, Analyst Says

In an X post on Friday, crypto analyst Burak Kesmeci shared an insight on the cyclical relationship between Ethereum’s price and its Market Value to Realized Value (MVRV) ratio, which he states can be used to identify buy and sell signals.

According to Kesmeci, the last two bull and bear periods in the ETH market have revealed certain MVRV points i.e. 3.00 and 0.80 as vital to understanding price movement.

The analyst explains that an MVRV value above 3.00 usually results in Ethereum entering an overbought zone, presenting investors with an opportunity to sell in fear of a potential price fall. Alternatively, historical data have shown ETH to be “relatively cheap” and undervalued when the MVRV value falls below 0.80, representing an opportunity for aggressive purchases by long-term investors.

However, In a more detailed analysis, Kesmeci highlights 2.25 to be a critical MVRV level in a bullish Ethereum market. The analyst states that significant price gains have been recorded whenever ETH moved past this MVRV value in the last two bull cycles.

According to Kesmeci, Ethereum’s current MVRV stands at 1.22 following a decrease from 1.95 over the last 120 days. A continuous decline to below 0.80 would present a buy signal as earlier stated. However, investors should only anticipate a “serious rally” if the MVRV value moves upward and past 2.25.

Key Ethereum Support Zone Revealed

In other news, market analyst Ali Martinez has identified a key support level for Ethereum. According to data from IntoTheBlock, 2.4 million wallet addresses acquired $52.6 million worth of ETH at the $2,300 price mark. Therefore a price fall below this region could trigger a panic market sale, resulting in a further price loss.

At the time of writing, ETH trades at $2,458 with a 4.51% gain in the past 24 hours. However, the general market sentiment towards the altcoin remains largely bearish. This is reflected in the 13.21% decline in its daily trading volume currently valued at $13.45 billion. With a market cap of $293.36 billion, Ethereum remains the second-largest cryptocurrency after Bitcoin.

Featured image from The Guardian Nigeria, chart from Tradingview

Semilore Faleti

Semilore Faleti is a cryptocurrency writer specialized in the field of journalism and content creation. While he started out writing on several subjects, Semilore soon found a knack for cracking down on the complexities and intricacies in the intriguing world of blockchains and cryptocurrency.

Semilore is drawn to the efficiency of digital assets in terms of storing, and transferring value. He is a staunch advocate for the adoption of cryptocurrency as he believes it can improve the digitalization and transparency of the existing financial systems.

In two years of active crypto writing, Semilore has covered multiple aspects of the digital asset space including blockchains, decentralized finance (DeFi), staking, non-fungible tokens (NFT), regulations and network upgrades among others.

In his early years, Semilore honed his skills as a content writer, curating educational articles that catered to a wide audience. His pieces were particularly valuable for individuals new to the crypto space, offering insightful explanations that demystified the world of digital currencies.

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Currently at NewsBTC, Semilore is dedicated to reporting the latest news on cryptocurrency price action, on-chain developments and whale activity. He also covers the latest token analysis and price predictions by top market experts thus providing readers with potentially insightful and actionable information.

Through his meticulous research and engaging writing style, Semilore strives to establish himself as a trusted source in the crypto journalism field to inform and educate his audience on the latest trends and developments in the rapidly evolving world of digital assets.

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Semilore Faleti is also a strong advocate for social justice, preaching fairness, inclusivity, and equity. He actively promotes the engagement of issues centred around systemic inequalities and all forms of discrimination.

He also promotes political participation by all persons at all levels. He believes active contribution to governmental systems and policies is the fastest and most effective way to bring about permanent positive change in any society.

In conclusion, Semilore Faleti exemplifies the convergence of expertise, passion, and advocacy in the world of crypto journalism. He is a rare individual whose work in documenting the evolution of cryptocurrency will remain relevant for years to come.

His dedication to demystifying digital assets and advocating for their adoption, combined with his commitment to social justice and political engagement, positions him as a dynamic and influential voice in the industry.

Whether through his meticulous reporting at NewsBTC or his fervent promotion of fairness and equity, Semilore continues to inform, educate, and inspire his audience, striving for a more transparent and inclusive financial future.

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