The worst appears to be over for Ethereum (ETH) as various metrics suggest that the bottom is already in for the second-largest cryptocurrency by market cap. This points to Ethereum heading toward a new all-time high (ATH), potentially surpassing its current ATH of $4,800.
Data from the onchain analytics platform Glassnode indicates that Ethereum’s market value to realized value (MVRV) lowest pricing level is at $1,687, suggesting that the bottom for the crypto token has been established. MVRV levels are crucial as they estimate the low or high points a token may reach in a market cycle based on unrealized losses or profits. Therefore, it is unlikely that Ethereum will dip below the $1,687 price level and seems more likely to head towards its market peak.
It is notable that Ethereum plummeted to as low as $2,200 following the market crash on August 5. This price level closely aligns with the $2,109 MVRV pricing band highlighted by Glassnode, further substantiating that the crypto has already bottomed out.
In parallel, there’s a notable shift toward accumulation among Ethereum investors. Data from Glassnode reveals that the percentage of ETH’s supply held on exchanges has drastically declined to under 10%. This decline is significant as it potentially reduces the selling pressure on Ethereum, paving the way for a massive rally, provided investors continue to hold their assets.
Further data from Glassnode suggests that Ethereum could rise above $5,000, reaching as high as $6,759, which is currently the highest MVRV pricing level for the crypto. This price level could signify the market top for Ethereum in this bull run. However, some analysts, including Tyler Durden, predict that the cryptocurrency could potentially reach $10,000.
Additional metrics support an imminent price rally for ETH. A recent blog post on the onchain analytics platform Cryptoquant highlights two metrics indicating that Ethereum is gearing up for its next leg up. One of these metrics is the Taker Buy-Sell Ratio, which calculates the ratio of Ethereum buyers to sellers. This metric has turned positive again, demonstrating that Ethereum bulls are regaining strength and are mitigating selling pressure from the bears.
Another significant metric is Ethereum’s open interest (OI), which is on the rise again after dropping to $7 billion following the August 5 market crash. Data from Coinglass shows that the OI currently stands at 10.81 billion, indicating that leveraged players are returning to the market. This is noteworthy as trading volume in the derivatives market significantly impacts ETH’s price.
At the time of writing, Ethereum is trading at around $2,590, down over 3% in the last 24 hours, according to data from CoinMarketCap. The price still remains above $2,500, reflecting a resilient hold amid market fluctuations.
