Let's see, my crypto people! 🚀 Did the chaos break out with Ethereum or what?
Be careful with this! If you were one of those who had their eyes on Ethereum (ETH), waiting for it to break that psychological barrier of $4,000, it surely gave you a shock last Friday. Out of nowhere, the price plummeted and fell below $3,500. Like a bucket of cold water! 🥶 Many were already thinking: "Is the party over? Has the dream of a new all-time high disappeared?"
But pay attention! Not everything is lost, my people. Here is where the analysis makes us think. A crypto expert, Burak Kesmeci, dropped a gem: the famous MVRV (Market Value to Realized Value) indicator for ETH, which measures if the coin is overpriced or cheap, has been declining for seven years! And now, it could be about to reverse that trend. 📈
The MVRV signal: Why is there hope?
Imagine that the MVRV is like the thermometer for crypto fever. If it’s very high (over 3.7), the coin is "overvalued" and many sell to secure profits. If it’s below 1, it’s super cheap! Although ETH's MVRV hit an important resistance and there was a "profit-taking" (that’s why we saw that drop), Kesmeci says there are reasons for optimism. 🥳
What’s the key? The interest from big players. Yes, institutions are pouring money into the spot ETH ETFs in the United States! This is like when a famous artist starts using something: suddenly, everyone wants it. That fresh capital flow is a sign that the market has confidence in Ethereum's future.
So, as long as the MVRV stays above its 365-day average, things look good. We can expect Ethereum to resume its upward path and, in the blink of an eye, we’ll see those $4,000 or more again! For now, the price hovers around $3,523, with a 5% drop in the last 24 hours. It’s a small breather before, perhaps, the next big leap.
So, will the "king of altcoins" rise stronger than ever? Stay alert, because the movie is not over yet!