In the dynamic world of cryptocurrency, *ETH* has recently showcased a remarkable recovery, pushing its price back above the $3,600 mark. This surge arrives after a tumultuous period earlier in the month when Ethereum’s price plummeted by approximately 25% between March 11th and 19th. Alongside this price resurgence, a new milestone has been reached in terms of network growth.
The total number of Ethereum addresses holding coins has escalated to an all-time high of 118,230 wallets. This growth in the ETH user base could potentially be a testament to the increasing confidence and interest from investors and users in the Ethereum network. Santiment, a behavior analytics platform, highlighted this trend on social media, correlating the increase in Ethereum addresses to a subtle yet optimistic sign in the mid-term Market Value to Realized Value (MVRV) ratio.
Potential Ethereum Rally
The MVRV ratio is a metric used to assess the average profit or loss of holders of a given cryptocurrency based on the price at which the tokens were last moved. According to the data, there is a dip into the negative territory for the 30-Day MVRV, which historically suggests a potential undervaluation of ETH and thus could signal a likelihood of an upcoming rise in its price.
#Ethereum has taken a jump this weekend, rebounding above $3.6K after dropping as much as -25% between March 11th and 19th. The amount of $ETH addresses holding coins is up to an #AllTimeHigh 118.23K, and mid-term MVRV has a very mild #bullish signal. https://t.co/YbGArXdzAN pic.twitter.com/oSEEjNapkY
— Santiment (@santimentfeed) March 31, 2024
The chart shared by Santiment illustrates the trajectory of the ETH price alongside the total number of holders and the 30-day MVRV ratio. The correlation seems to imply that as more addresses hold Ethereum and the MVRV ratio dips, there could be an increased probability for price increases, assuming that historical patterns hold.
The current price of ETH stands at $3,603, marking a 1.65% increase over the last 24 hours. This uptick is not just a number; it mirrors the sentiments and the vibrant activity within the Ethereum ecosystem. As the platform continues to evolve with upcoming upgrades and increased adoption in the decentralized finance (DeFi) space, the community watches eagerly for what the future holds for the second-largest cryptocurrency by market capitalization.
Investors and enthusiasts alike are keeping a close eye on these metrics, as they often provide valuable insights into market trends and potential future movements. With the crypto market being notoriously volatile, these indicators serve as a navigational tool for those steering through the ever-changing tides of digital currencies.
