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According to an important indicator of the chain, Ethereum (ETH) can be undervalued at its current market price. The last time ETH was this undervalued was in October 2023, after which it experienced a rally of 160%.
Ethereum can be undervalued, suggests an indicator of the chain
The current MVRV-Z score of Ethereum suggests that the second largest cryptocurrency can be undervalued by the total market capitalization at its current price. This statistics – used to determine whether an actively overvalued or undervalued – is currently at the lowest level in 17 months.
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The low MVRV-Z score from ETH indicates that digital actively can approach a local soil. In particular, the last time that this measurement was at a similar level in October 2023, ETH rose by 160%.
For the non-consecrated people, the MVRV-Z-score compares the difference between the market value of an active and its value to assess Overbough or over-sold circumstances. A high score indicates potential market picks, while a low score suggests possible soils.
In addition to October 2023, the MVRV-Z-score of Ethereum entered the Green Band two other times in December 2022 and again in March 2020. On both occasions, ETH then entered a bullish phase.
Moreover, analysis of chains indicate that crypto-whales collect quietly ETH pending an important upward movement. Data from Cryptoquant shows that ETH inflow in accumulation addresses have risen to multi-year highlights, which surpassed levels before large bullruns.
High inflow into accumulation addresses suggest that institutional investors and large holders anticipate an increase in the price of ETH. This is in line with recent analysis prediction That ETH is ready this year for a substantial meeting, which means that the digital assets may threaten to $ 9,000.
In addition, Ethwalfissen – wallet addresses that hold between 1,000 and 10,000 ETH – are aggressive accumulation since July 2024. This coincided with the US Securities and Exchange Commissions (SEC) approval of the first place Eth Exchange-Traded Fund (ETF).
Will Eth surprise the market?
In addition to a Bullish MVRV-Z score and increasing ETH inflow in accumulation addresses, various other indicators suggest that ETH is on the edge of a surprise rally, despite the rule bearish sentiment.
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After the recent market bullage, ETH’s weekly relative strength index (RSI) drop To a low point of three years, feeding optimism for an imminent rally. However, increasingly ETH reserves on exchanges can be a challenge for Opwen Momentum.
Likewise there are still worries about the continuous of the Ethereum Foundation sale from ETH, which may contribute to price suppression. From the moment of press, ETH is traded at $ 2,268, which reflects an increase of 3.7% in the last 24 hours.
Featured image of Unsplash, graphs of Glassnode, Cryptoquant and TradingView.com
