Key Points
- Ethereum’s market capitalization has increased by over 14% in the past week.
- Short-term Ethereum holders are seeing profits, according to the 7-day MVRV ratio.
Ethereum [ETH] has emerged as a standout performer over the past week, with its market capitalization seeing a significant increase.
The market cap of Ethereum grew by more than 14%, showcasing its attractiveness as an investment during unstable market conditions.
Ethereum’s Market Performance
Data from Santiment shows that investors who bought Ethereum during its recent dip are now experiencing substantial returns. The increase in Ethereum’s market cap highlights the profitability for those who entered the market at lower prices.
On 15th July, Ethereum showed a marked uptrend. The price of Ethereum rose by 8%, moving from around $3,246 to approximately $3,485. This surge pushed its price above its short-moving average, suggesting the potential for further gains.
However, at the time of writing, Ethereum was trading with a nearly 3% decline at around $3,380. Despite this, it remained slightly above its previous resistance level, now turned support.
Profits for Short-term Holders
The 7-day Market Value to Realized Value (MVRV) ratio of Ethereum indicates that short-term holders are realizing significant profits. The MVRV ratio was around 5.6% at the time of writing.
Despite a recent decline from over 9% noted on 15th July, the MVRV ratio remained profitable for holders. This suggests that those who invested more recently are still profiting despite the price pullback.
The MVRV ratio initially moved into the profit zone around 9th July and continued to rise until the recent drop. However, the current downturn warrants monitoring to gauge the potential for sustained profitability or further corrections.
