Good news for altcoin investors: Positive signal from Ethereum (ETH)!

Ethereum ($ETH ) reaching $ 3600 gave hope for an altcoin rally.

Ethereum, which has been weak compared to Bitcoin for a while, finally managed to catch a breakout. The leader of altcoins, which stepped on the gas after exceeding $ 3500, reached $ 3600. With this development, sharp increases were observed in cryptocurrencies in the Ethereum ecosystem.

The Market Value - Realized Value (MVRV) ratio, a metric frequently used to analyze Ethereum's market performance, stands out as a tool in determining investors' profitability and peak/bottom points for the market. The MVRV ratio measures the market value of an asset compared to its realized value, revealing whether the asset is overvalued or undervalued.

MVRV Ratio Increase: An increase in the ratio indicates that more investors are in profit. However, when it reaches excessive levels, it indicates that the asset’s value may be inflated and the risk of a price correction is increasing.

MVRV Ratio Fall: This indicates that investor profitability is decreasing, and low levels may present an attractive opportunity to accumulate.

The 30-day MVRV ratio for Ethereum currently stands at 11.89 percent. This rate is far from the 18-22 percent range that is usually the local peaks. This data shows that the Ethereum price is not yet overvalued and that there is still potential for an increase.

Another important metric, the Average Investment Age (MDIA), indicates that Ethereum may avoid further declines. MDIA measures the average age of all coins on a blockchain, weighted by purchase price.

MDIA Rise: It indicates that coins are becoming more stable, meaning the probability of a sudden price increase is decreasing.

MDIA Fall: It indicates that previously inactive coins are starting to move, indicating an increase in trading activity.

The fact that MDIA is in a downtrend for Ethereum indicates that market activity is increasing and strengthens the possibility of a price rally for ETH.