Ethereum MVRV Holds At 1.20–1.25, Suggests Market Peak Is Not In Sight - Details

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure The Ethereum (ETH) market registered a modest 4.1% gain in the past week amidst a general price rebound in the broader crypto market. However, the prominent altcoin and second largest cryptocurrency continues to trade $2,600 which has acted as an efficient price barrier over the past month. Interestingly, recent technical data shows Ethereum is still likely to experience significant price growth in the current market cycle, despite its ongoing price struggles.

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In an X post on July 4, popular market analyst Burak Kesmeci shares an interesting insight on the Ethereum market. Using data from Tradingview, Kesmeci observes ETH has held an MVRV value between 1.20-1.25, indicating a strong market uncertainty despite investors retaining a modest profit.

As the name suggests, the MVRV (Market Value to Realized Value) ratio compares an asset’s current market value (MV) to its realized value (RV), which reflects the average price at which the asset was last moved on-chain. It is a key indicator used to assess whether an asset is overvalued or undervalued. An MVRV >1 indicates that investors are in profit, holding unrealized gains indicating significant potential for profit taking, while an MVRV <1 suggests investors are at a loss presenting a good time for accumulation as the asset is undervalued.

Source: @burak_kesmeci on XAs earlier stated, the present MVRV levels between 1.20-1.25 signals Ethereum investors are presently profitable. However, Burak Kesmeci states 2.25 has emerged as a crucial psychological and technical level in the current cycle. The analyst explains that it was precisely at this point that many investors opted to lock in profits during the major price upswing in Q4 2024, effectively ending Ethereum’s rally at the time.

While Kesmeci states it is unknown if Ethereum’s MVRV will return to such levels, the current standings indicate the altcoin is far from its peak price levels of the current market cycle, indicating the present price uptrend still presents room for growth before entering an overheated market phase.

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At press time, Ethereum trades at $2,520 on the daily chart reflecting a price loss of 1.35%. Meanwhile, the asset’s trading volume is down by 9.8% and valued at $16.29 billion.

According to data from CoinCodex, the general Ethereum market sentiment remains neutral but with a Fear & Greed index of 73 indicating strong levels of greed. CoinCodex analysts forecast that Ethereum could trade around $2,737 within the next month, with a potential climb back to local peak levels near $4,099 over the next three months, suggesting a bullish mid-term outlook despite the current cautious sentiment.

ETH trading at $2,523 on the daily chart | Source: ETHUSDT chart on Tradingview.comFeatured image from Pexels, chart from Tradingview Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.