Ethereum Metrics Turn Positive: Can This Drive A New ATH Above $5,000?
August 21 2024 - 9:00PM
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The worst looks to be over for Ethereum (ETH), as certain metrics
suggest that the bottom is already in for the second-largest crypto
by market cap. Based on this, ETH looks to be headed for a new
all-time high (ATH), surging past its current ATH of $4,800.
Ethereum MVRV Shows Bottom Is In Data from the onchain analytics
platform Glassnode shows that Ethereum’s market value to realized
value (MVRV) lowest pricing level is at $1,687, which suggests that
the bottom is already in for the crypto token. These MVRV pricing
levels highlight how low or high a token will likely reach in a
market cycle based on unrealized loss or unrealized profits.
Related Reading: Bitcoin Maintains Market Dominance With $42
Million In Inflows As such, Ethereum is unlikely to see a drop
below the $1,687 price level and instead looks headed for its
market top. It is worth mentioning that Ethereum dropped to as low
as $2,200 following the market crash on August 5. That price level
is close to the $2,109 MVRV pricing band, which Glassnode
highlighted, further proving that the crypto has bottomed.
Meanwhile, the shift to accumulation among Ethereum investors
indicates that they are no longer looking to sell their assets but
are holding in anticipation of higher prices. Data from Glassnode
shows that the percentage of ETH’s supply held on exchanges has
drastically declined to under 10%. This is significant as it
potentially reduces the selling pressure on Ethereum and primes it
for a massive rally as long as investors continue to hold.
Data from Glassnode shows that Ethereum could rise above $5,000 and
reach as high as $6,759, which is the highest MVRV pricing level
for the crypto at the moment. That price level could mark a market
top for Ethereum in this bull run, although crypto analysts like
Tyler Durden have predicted that the crypto could still reach
$10,000. Other Metrics That Support An Imminent Price Rally
For ETH A recent blog post on the onchain analytics platform
Cryptoquant highlighted two metrics that show that Ethereum is
gearing up for its next leg up. One is the Taker Buy-Sell Ration,
which calculates the ratio of Ethereum buyers to sellers. This
metric is said to be positive again as Ethereum bulls are regaining
strength and suppressing any selling pressure from the bears.
Related Reading: Cardano Kicked Out Of Top 10 Crypto By Market Cap,
What’s Going On? Ethereum’s open interest (OI) is again rising
after dropping to $7 billion following the August 5 market crash.
Data from Coinglass shows that the OI is currently at 10.81
billion, indicating that leveraged players are returning to the
scene. This is significant as trading volume in the derivatives
market also greatly impacts ETH’s price. At the time of
writing, Ethereum is trading at around $2,590, down over 3% in the
last 24 hours, according to data from CoinMarketCap. Featured
image created with Dall.E, chart from Tradingview.com
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