This Special Metric May Provide Clues About the Future of Ethereum’s Price
Cryptocurrency analysis firm Alphractal has focused its attention on the MVRV Z-Score, one of Ethereum's (ETH) on-chain indicators. According to the company's assessment, on August 13th, the MVRV Z-Score returned to its March 2024 levels. Ethereum hadn't performed strongly during that period.
The MVRV Z-Score measures the difference between market value and realized value, adjusting for historical volatility. This metric is used to identify both periods of market enthusiasm and attractive accumulation opportunities for long-term investors.
According to data shared by Alphractal, the metric is currently trading below the on-chain “indecision zone.” Historically, this zone has acted as both a resistance and pullback area depending on whether the market is bullish or bearish.
For a more optimistic outlook, the indicator needs to surpass its August peak of 1.33. However, the MVRV Z-Score, currently at 0.9, suggests that Ethereum may face sideways consolidation and selling pressure in the short term.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
From yen rate hikes to mining farms shutting down, why is bitcoin still falling?
The recent decline in bitcoin prices is primarily driven by expectations of a rate hike by the Bank of Japan, uncertainty regarding the US Federal Reserve's rate cut trajectory, and systemic de-risking by market participants. Japan's potential rate hike may trigger the unwinding of global arbitrage trades, leading to a sell-off in risk assets. At the same time, increased uncertainty over US rate cuts has intensified market volatility. In addition, selling by long-term holders, miners, and market makers has further amplified the price drop. Summary generated by Mars AI This summary was generated by the Mars AI model, and the accuracy and completeness of its content are still being iteratively updated.
The Economist: The Real Threat of Cryptocurrency to Traditional Banks
The crypto industry is replacing Wall Street's privileged status within the American right-wing camp.
Grayscale's Top 10 Crypto Predictions: Key Trends for 2026 You Can't Miss
The market is transitioning from an emotion-driven cycle of speculation to a phase of structural differentiation driven by regulatory channels, long-term capital, and fundamental-based pricing.
From Yen Interest Rate Hike to Mining Farm Shutdown, Why Is Bitcoin Still Falling
The market is down again, but this may not be a good buying opportunity this time.
Trending news
MoreCrypto prices
More
