The worst seems to be over for Ethereum (ETH)as certain indicators suggest that the low point for the second largest crypto by market capitalization. On this basis, ETH seems to be on a new all-time high (ATH)surpassing its current high of $4,800.
Ethereum MVRV shows that the bottom has been reached
Data from the Onchain analytics platform Glassnode shows that Ethereum’s lowest price relative to realized value (MVRV) is at $1,687, suggesting that the bottom has already been reached for the crypto token. These MVRV price levels show how low or high a token is likely to go in a Market cycle based on unrealized losses or unrealized gains.
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Therefore, Ethereum is unlikely to fall below the $1,687 price level but is more likely to head towards its market high. It is worth noting that Ethereum has been Stock market crash on August 5This price level is close to the MVRV price range of $2,109 highlighted by Glassnode, which is further evidence that the cryptocurrency has bottomed out.
Meanwhile, Ethereum investors’ shift to accumulation suggests that they no longer want to sell their assets but are holding them in anticipation of higher prices. Data by Glassnode shows that the percentage of ETH offer The share on exchanges has dropped drastically to below 10%. This is significant as it potentially reduces the selling pressure on Ethereum and sets it up for a massive rally as long as investors continue to hold.
Data from Glassnode shows that Ethereum could rise above $5,000 and reach $6,759, which would be the highest MVRV price level for the cryptocurrency at the moment. This price level could mark a market high for Ethereum in this bull run, although crypto analysts like Tyler Durden predicted that the cryptocurrency could still reach $10,000.
Other metrics supporting an upcoming price rally for ETH
A recent Blog post on the Onchain analysis platform Cryptoquant highlighted two metrics that show Ethereum is preparing for its next upswing. One of them is the Taker Buy-Sell Ratio, which calculates the ratio of Ethereum buyers to sellers. This metric is expected to be positive again, as Ethereum Bulls gain strength and suppress all Selling pressure from the bears.
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Ethereum Open Interest (OI) is rising again after falling to $7 billion following the stock market crash on August 5. Data from Coinglass shows that the OI currently stands at 10.81 billion, suggesting that leveraged players are returning to the scene. This is significant because trading volume in the derivatives market also greatly influences the price of ETH.
At the time of writing, Ethereum is trading at around $2,590, down over 3% in the last 24 hours. Data by CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
