Key Points
- Ethereum’s recent price drop has caused concern among long-term holders.
- The MVRV ratio indicates that Ethereum may be undervalued.
Long-term holders of Ethereum (ETH) are reportedly worried about the cryptocurrency’s potential.
This was uncovered through an examination of the Long-Term Holders Net Unrealized Profit/Loss (LTH-NUPL), a metric that considers the behavior of investors who have held the coin for at least 155 days.
Ethereum’s LTH-NUPL Status
The LTH-NUPL has shifted from green to yellow. Green indicates the belief that the price will continue to rise, while yellow suggests that holders have become anxious about Ethereum’s future.
This change in sentiment could be due to Ethereum’s recent price movements. On April 12th, Ethereum’s price fell below $3,200, causing further unease among investors.
Ethereum’s Price Action and Seller Exhaustion Constant
The Seller Exhaustion Constant, a metric used to assess the likelihood of a price increase, indicated that sellers were becoming fatigued.
However, data showed that the metric had dropped to 0.036, suggesting that a price drop may still be on the horizon. If the reading continues to decrease, Ethereum’s price could also fall, potentially leading to a shift in investor sentiment from optimism to fear.
On the other hand, a rise in the Seller Exhaustion Constant could signal a potential price increase. If this happens, Ethereum could attempt to reach the $3,200 to $3,500 range in the short term.
The MVRV Ratio and Ethereum’s Value
The Market Value to Realized Value (MVRV) ratio, which can indicate if an asset is undervalued, at fair value, or overvalued, suggested that Ethereum might be undervalued.
This was evidenced by a negative MVRV ratio, which indicates that most recent Ethereum investors are at a loss. However, a similar negative MVRV ratio in March was followed by a price rally, suggesting that Ethereum’s long-term potential could still be bullish.
