Market Indicators
According to CoinGlass, May is historically a successful month for Ethereum. Over many years, the average return for ETH during this period has been 27.36%. This is the highest figure among all other months of the year. Analyst Cyclop expects the altcoin to maintain upward momentum and reach $2,500.
Another important factor supporting an optimistic forecast for Ethereum is the Market Value to Realized Value (MVRV) ratio. According to well-known crypto trader and analyst Michaël van de Poppe, the current MVRV for ETH is at its lowest level since March 2020, when the crypto market was under the influence of the COVID-19 pandemic.
A low MVRV value indicates that Ethereum is undervalued. This has only occurred six times in the last 10 years and has always preceded significant growth. Under similar conditions, ETH appreciated over the following 3-12 months.
Moreover, according to CryptoQuant data, whales not only did not sell ETH during dips but also increased their holdings. On March 10, they held 15.5356 million ETH. By May 3, this number had increased by 22.54% to 19.0378 million ETH. Such behavior often precedes a market reversal, as 'smart money' prepares for a rise.
