Ethereum Bearish Signal: MVRV Has Entered The “Danger” Zone

Name	Symbol	Market	Market Cap ($)	Algorithm
Mina	MINAUSD	Crypto	573,679,879	Not Mineable

Name

Symbol

Market

Market Cap ($)

Algorithm

Mina

MINAUSD

Crypto

573,679,879

Not Mineable

	Price Change	Price Change %	Current Price	Bid Price	Offer
	0.003	0.56%	0.543	0.543	0.544

Price Change

Price Change %

Current Price

Bid Price

Offer

0.003

0.56%

0.543

0.544

High Price	Low Price	Open Price	Prev. Close	52 Week Range
0.549	0.513	0.541	0.540	0.349000 - 1.73

High Price

Low Price

Open Price

Prev. Close

52 Week Range

0.549

0.513

0.541

0.540

0.349000 - 1.73

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	18:20:30	0.197000	0.543	USD

Exchange

Last Trade

Size

Trade Price

Currency

GDAX

18:20:30

0.197000

0.543

USD

Price x Volume	Volume	Base Symbol	Related Pairs
304,883.37	571,199.16	MINA	MINAEUR	MINAGBP	MINABTC

Price x Volume

Volume

Base Symbol

Related Pairs

304,883.37

571,199.16

Ethereum Bearish Signal: MVRV Has Entered The “Danger” Zone

31/10/2023 6:00pm

NEWSBTC

On-chain data shows the Ethereum Market Value to Realized Value (MVRV) ratio has entered inside a danger zone that has historically led to tops. Ethereum MVRV Ratio Has Surged Into The Danger Zone Recently In its latest insight post, the on-chain analytics firm Santiment has talked about some underlying metrics related to ETH. First, the firm has pointed out how the trading volume of the cryptocurrency has gone down since Ethereum’s surge from a few days back. The value of the metric has been sharply going down recently | Source: Santiment The trading volume observing a significant decline while the price is trying to continue its rally could indicate that momentum is weakening for the cryptocurrency. Related Reading: Is Bitcoin Top Here? This Metric Would Say Otherwise One positive for the asset, though, could be the fact that the supply on exchanges has gone down since the rally started, implying that the investors have made net withdrawals. Looks like the metric has plunged | Source: Santiment Generally, investors transfer their Ethereum out of these central entities to hold onto it in self-custodial wallets for extended periods, so this decline in the supply on exchanges could be a sign of fresh accumulation. Following the latest rise in the asset, its social dominance has also seen a jump. The “social dominance” here refers to the mindshare that Ethereum occupies on social media platforms among the top 100 cryptocurrencies by market cap. Interest around ETH has grown in the last few days | Source: Santiment It would appear that more eyes have been turning at Ethereum recently, which can be a sign that hype is building up among the traders. Historically, too much hype has been negative for the asset, as it has often led to top formations. So far, though, the social dominance is still notably below the levels it was at when ETH hit its local top at the start of this month, as is apparent in the above chart. According to Santiment, this “may suggest there can be some room for it to go before things cool down.” A signal that is more concretely bearish for Ethereum, however, is the 30-day MVRV ratio. In simple terms, what this ratio tells us is how the value that investors are holding (the market cap) compares against the capital that they invested into the asset (the realized cap). The indicator appears to have entered the danger zone | Source: Santiment Here, Santiment has used the 30-day MVRV ratio, which means this indicator only keeps track of the investors/addresses who bought their coins within the last 30 days. Related Reading: Bitcoin Solid Above $34,000 Despite High Short-Term Holder Profit-Taking As shown in the chart, this Ethereum indicator has recently risen into a territory that the analytics firm labels as a “danger zone.” Historically, the price has seen a correction not too long after the metric has reached this zone so another local top may be due for Ethereum right now. ETH Price At the time of writing, Ethereum is trading at around $1,800, up 1% in the past week. ETH has been stuck in consolidation recently | Source: ETHUSD on TradingView Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Santiment.net

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