Despite the recent market crash on August 5th that saw Ethereum drop to as low as $2,200, it seems that the worst may be over for the second-largest cryptocurrency by market cap. According to data from the onchain analytics platform Glassnode, Ethereum’s market value to realized value (MVRV) lowest pricing level is currently at $1,687, suggesting that the bottom is already in for the crypto token. This indication points towards ETH potentially surging past its current all-time high of $4,800 and reaching new highs in the near future.
One of the key factors supporting the bullish case for Ethereum is the shift towards accumulation among investors. Glassnode data shows that the percentage of ETH’s supply held on exchanges has significantly decreased to under 10%. This trend indicates that investors are no longer looking to sell their assets but are instead holding onto them in anticipation of higher prices. With reduced selling pressure on Ethereum, the stage is set for a potential massive rally as long as investors continue to hodl.
Glassnode’s data also suggests that Ethereum could see a price surge above $5,000 and potentially reach as high as $6,759, which is currently the highest MVRV pricing level for the crypto. While this price level could mark a market top for Ethereum in the current bull run, some analysts, such as Tyler Durden, believe that the crypto could ultimately reach $10,000. The positive outlook is further supported by recent blog posts on the onchain analytics platform Cryptoquant, which highlighted two metrics indicating that Ethereum is gearing up for its next leg up.
One of the key metrics highlighted is the Taker Buy-Sell Ration, which calculates the ratio of Ethereum buyers to sellers. This metric currently shows a positive trend, signifying that Ethereum bulls are regaining strength and suppressing any potential selling pressure from the bears. Additionally, Ethereum’s open interest (OI) is on the rise again after dropping to $7 billion post the August 5th market crash. Data from Coinglass reveals that the OI has now reached 10.81 billion, indicating that leveraged players are starting to return to the scene.
While the recent market volatility may have caused some concerns, the overall outlook for Ethereum appears to be overwhelmingly positive. With key metrics showing signs of strength and accumulation among investors, Ethereum is poised to potentially break its previous all-time high and reach new milestones in the near future.