Key Points
- Ethereum has seen a 3.39% increase over the past month, currently trading at $2441.
- Ethereum’s MVRV score has been declining for the last four months, suggesting a potential buying opportunity.
Ethereum has experienced a reversal of fortune in the past month, seeing a moderate uptick of 3.39%. At the time of writing, Ethereum was trading at $2441.
Ethereum’s MVRV Score
Current market conditions have led to discussions about Ethereum’s future trajectory. Cryptoquant analyst Burak Kesmeci suggests that Ethereum’s current MVRV levels may present a buying opportunity. Ethereum’s MVRV score has been on a downward trend for the past four months, failing to surpass its March levels of 2.25 points and currently sitting at 1.22 points.
The MVRV score is crucial as it needs to increase for Ethereum to rally again. Without an uptick in this score, the potential for a bull run is minimal.
Market Fundamentals
It’s important to also consider other market fundamentals. Ethereum’s large holders’ inflow has increased by 57.46% over the past week, from 176.29k to 277.58k, indicating strong buying activity and potential positive momentum.
Ethereum’s Open Interest per exchange has also risen by 8.89%, from $2.25 billion to $2.4 billion, suggesting that investors are opening new positions and maintaining existing ones.
Ethereum’s MVRV Z Score stands at 0.145, indicating a healthy market environment with stabilizing prices post-market correction. This suggests that the current market conditions are neither a speculative bubble nor undervalued.
Lastly, Ethereum’s DyDx Exchange funding rate has remained positive throughout the past week, indicating a high demand for long positions, with investors willing to pay premiums during the market downturn.
While it’s too early to declare a rally for Ethereum, the current market conditions suggest a favorable environment for a potential upswing. If these conditions persist, Ethereum could hit its $2557 resistance level in the short term.
