MVRV-Z compares the difference between the market and realized value of an asset and assesses overbought and oversold conditions; a high MVR-Z value indicates a possible market ceiling, while a low value indicates a possible low.
Apart from October 2023, the MVRV-Z for #Ethereum entered the green band twice - in December 2022 and in March 2020. In both cases, #ETH subsequently entered a bullish phase.
Furthermore, blockchain analysis shows that the cryptocurrency is gradually accumulating ETH in anticipation of significant growth. CryptoQuant data shows that ETH inflows to accumulation addresses are at their highest levels in recent years. The surge has exceeded the levels seen before the major bull phase.
High inflows to accumulation addresses indicate that institutional investors and large holders are expecting ETH prices to rise. This is consistent with a recent analysis predicting that ETH could appreciate significantly this year, with prices rising to $BTC additionally, ETH "whales" (wallet addresses holding between 1,000 and 10,000 ETH) have been active since July 2024 and accumulating funds. This coincides with the SEC's approval of the first ETH spot exchange-traded fund (ETF).
Can ETH surprise the market? In addition to the bullish MVRV-Z indicator and increased ETH inflows into accumulation addresses, several
After the recent market sell-off, ETH's weekly relative strength index (RSI) fell to a three-year low, fueling #optimism that a rally is imminent. Fueling optimism. However, rising ETH inventory on exchanges could be a problem for the upward momentum.
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