The historic composition of the MVRV ratio led to a rebound in ETH.
While traders consolidated gains, OI showed that new gains were imminent.
On April 8, #BTC [ETH]'s market capitalization jumped more than 9%, disproving the perception of slow movement in this cycle. This growth brought its market capitalization to over $440 billion.
During this period, the altcoin's price exceeded USD 3,700 and then declined slightly. However, this was not the main event.
AMBCrypto analyzed the state of Ethereum on the #blockchain and focused on the market to realized value ratio (MVRV). This ratio provides insight into the trading behavior of traders. It also helps in identifying asset lows and ceilings.
Between April 1 and April 7, the 30-day MVRV ratio for #ETH was negative, indicating an unusual buying opportunity in this area. This prediction is based on the history of cryptocurrencies.
For example, in October 2023, when ETH was trading at $1,566, the ratio was -4.90. A few weeks later, the price crossed the USD 2,000 mark. A similar scenario occurred in January, when ETH went from USD 2,237 to USD 4,088.
In both cases, the prices rose by 21.7% and 45.27% respectively. This time around, Ethereum only went up in price by 7.89 %. If past trends are repeated, prices could rise to US$4,648 in the coming weeks.
However, this can only happen if there is no extreme volatility in the market and the price does not fall sharply. If this happens, the bullish outlook may become irrelevant.
Is it time to lock in excessive profits?
On the other hand, traders are taking advantage of rising prices to take profits. This is something ETH holders have not been able to boast about in recent weeks.
Daily trading volume during losses on the blockchain totaled $129,000. On the contrary, the trading volume on the blockchain during the upswing amounted to around $ 238,000.
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