Ethereum is the second most valuable asset among cryptocurrencies and the leading token on Web 3 and decentralized finance. Ki Young Ju, CEO of CryptoQuant stated that although Ethereum‘s Market Value to Realized Value(MVRV) is increasing, Its on chain reaction suggests that it may not be overvalued yet.
MVRV is a key metric to check if the token is overvalued or not, and is heating up, as compared to Bitcoin, one analyst suggests that the asset may not yet be in the overbought zone.
CryptoQuant CEO Ki Young Ju pointed out that while Ethereum’s MVRV is increasing fast, there’s also been a rise in transaction volume and active addresses on the Ethereum network.
“ETH MVRV is rising faster than BTC MVRV, suggesting ETH market is heating up relative to its on-chain fundamentals,” Ju posted on X on June 19.
MVRV is an indicator used to check if the asset is trading at its fair price or not. It is the difference between the investor-paid price and the asset‘s original price.
Sentiments shared data indicating the comparison of Bitcoin and Ethereum’s data over the last 30 days. These days Ethereum MVRV showed a significant rise of 29.9%, reaching 91.43%, and Bitcoin MVRV dropped by 10.8% to reach 127.41%.
Source: Sentiment
If the MVRV value is high, it indicates that the asset is trading above its value and is overbought, which has a fear of sell-off in the future. If this indicator is decreasing, it means that the market is cooling down and the asset is moving towards its fair price.
With the trading of Spot Ethereum ETF, Ju suggested that higher MVRV is not scary for investors.
“Given the current ETF situation, this might be an ETH-only season,” Ju added, referring to the timeframe of ETF trading, SEC Chair Gary Gensler said that it will start “over the course of this summer,” but ETF analyst Eric Balchunas predict it to start in the first week of July.
Can ETH Hit $10,000 by the End of 2024: Analysts
Pseudonymous crypto technical analyst Yoddha highlighted Ether’s current price on the chart, noting a slight consolidation following a morning star formation, which signals a bullish reversal from the bottom of a downtrend.
“Ethereum is holding up the price pretty well and looks ready to go bonkers,” Yoddha posted on X on June 19.
“It will be above $10,000 before the end of year. Mark my words,” Yoddha added.
According to CoinMarketCap data, Ethereum is now trading at the mark of $3,607.
Source: CoinMarketCap
On June 18, it rose back above the crucial $3,500 mark, a 1.37% increase, after ConsenSys announced that the United States Securities and Exchange Commission (SEC) is ending its investigation into whether ETH qualifies as a security.
Ethereum’s market dominance has grown significantly, rising 6.62% over the past seven days, according to TradingView data. In contrast, Bitcoin’s dominance has slightly decreased by 0.23% during the same period.
