The recent data from onchain analytics platform Glassnode indicates that Ethereum (ETH) may have already hit its lowest pricing level, suggesting that the crypto token is on its way to a new all-time high (ATH). The market value to realized value (MVRV) metric for Ethereum is currently at $1,687, signaling that the bottom may be in for the second-largest cryptocurrency by market cap.
Investor Sentiment and Market Trends
One of the key indicators of Ethereum’s potential upward trend is the shift in investor sentiment towards accumulation rather than selling. Data from Glassnode shows that the percentage of ETH’s supply held on exchanges has dropped to under 10%, indicating that investors are holding onto their assets in anticipation of higher prices. This decreased selling pressure could pave the way for a significant rally in Ethereum’s price.
According to Glassnode data, Ethereum could potentially surpass its current ATH of $4,800 and reach prices above $5,000, with a potential high of $6,759 being the highest MVRV pricing level for the crypto. While some analysts believe that this could mark a market top for Ethereum in the current bull run, others, like Tyler Durden, predict that the crypto could still surge to $10,000.
Additional metrics, such as the Taker Buy-Sell Ratio and Ethereum’s open interest (OI), further support the notion that Ethereum is gearing up for its next leg up. The Taker Buy-Sell Ratio, which calculates the ratio of Ethereum buyers to sellers, is showing a positive trend as bulls regain strength and suppress selling pressure. Moreover, Ethereum’s OI has rebounded to $10.81 billion after dropping to $7 billion post the August 5 market crash, suggesting that leveraged players are re-entering the market.
The data and metrics suggest that Ethereum’s outlook is positive, with indications that the bottom may already be in for the crypto. As investor sentiment shifts towards accumulation and market trends align with predictions of a potential rally, Ethereum could be on track to surpass its previous ATH and reach new heights in the near future.