⚠️ Ethereum’s ($ETH ) MVRV Ratio Triggers a Sell Warning
The Market Value to Realized Value (MVRV) ratio has spiked—meaning short-term holders are sitting on hefty profits—triggering a classic on-chain sell signal .
Historically, such elevated MVRV levels often precede price corrections, as holders cash in or take profits .
📉 What This Suggests Now
Ethereum’s profitability among recent buyers is near peaks—echoing previous cycles where sharp pullbacks followed rapid gains.
One analyst forecasted a potential drop toward $2,000 if broader sell signals align—though exact timing remains uncertain .
🌱 Not All the Signals Are Negative
Other factors—like parabolic on-chain activity, strong RSI/MACD technicals, and rising active addresses—suggest Ethereum still has constructive momentum .
That means market watchers should be alert: short-term volatility is possible even if long-term strength persists.
✅ Bottom Line
Ethereum’s high MVRV flags a cautionary sell zone—as recent entrants are long and profitable.
Yet, the broader on-chain environment remains active, implying volatility—not collapse—is the likely scenario.
A healthy pullback (e.g., to ~$2,000) could be a setup for the next upward phase.
