This Is Why Ethereum Price May Evade Falling Below $3,000
Recently, Ethereum (ETH) showed signs of falling below $3,000 but held firm as bulls defended the altcoin.
ETH is currently trading at $3,480, and here’s where ETH will go next.
Ethereum still has more room to grow
An indicator that has always proven reliable Analyzing Ethereum It is the ratio of market value to realized value (MVRV) and is a tool for assessing a holder’s profitability and identifying potential market tops or bottoms. The MVRV ratio compares a cryptocurrency’s market value to its realized value, providing insights into whether an asset is overvalued or undervalued.
When the MVRV ratio rises, it indicates that more holders are profiting. However, if it climbs to extremely high levels, it would indicate that the asset may be overvalued, thereby increasing the risk of a price correction. On the contrary, when the MVRV ratio decreases, it indicates a decrease in profitability.
If the ratio reaches an extremely low level, it indicates undervaluation, which may result in Attractive accumulation opportunities For investors. For ETH, the 30-day MVRV ratio has risen to 11.89%. However, this ratio is not close to the local maximum level, which is usually around 18% and 22%. Therefore, this development indicates the price of Ethereum.
In addition to the MVRV ratio, the Mean Dollar Investment Age (MDIA) also suggests that Ethereum may avoid further price declines. MDIA measures the average age of all tokens on the blockchain, weighted by purchase price.
A rise in MDIA indicates that the coin is becoming more stagnant, reducing the likelihood of a significant price increase.
Conversely, MDIA declines indicate that previously dormant coins are moving, indicating increased trading activity, which is the case with ETH. If this trend continues, it may increase the chances of Ethereum price rising.
ETH Price Prediction: May Hit $4,000
On the daily chart, The price of Ethereum has taken shape Inverse head and shoulders pattern. This pattern usually occurs after a long-term downtrend and marks a point of exhaustion for potential sellers.
The pattern consists of three key parts: the left shoulder, which marks the first uptrend; the head, which marks the end of the downtrend; and the right shoulder, which signals a rebound.
With ETH trending upward, cryptocurrencies are may rise to Short-term $4,000. On the other hand, this could change if selling pressure increases, and ETH may fall to $3,206.
Disclaimer
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