One metric indicates Ethereum (ETH) could be heading into an “opportunity zone,” according to the crypto analytics firm Santiment.
The firm notes in a new analysis that ETH’s 30-day market value to realized value (MVRV), which traders use to detect overbought or oversold conditions, is now out of the “danger zone” and headed towards the “opportunity zone,” an area where ETH prices have historically bottomed out.
MVRV is the ratio of an asset’s current market cap divided by its realized capitalization – i.e. the value of all measured ETH at the price they were bought. MVRV 30-Day is a timebound metric that only analyzes that ratio among tokens that have moved at least once in the past 30 days.
Santiment also notes that ETH’s recent local price top coincided with the Ethereum Foundation moving 14,999 ETH to the crypto exchange Kraken over the weekend.
“With the ETH foundation moving 14,999 coins to Kraken, an argument can be made that this move perfectly coincided with Ethereum’s local price top. Our insight covers the massive surge in active deposits & potential dip buy opportunities coming up.”
The last three times a significant amount of ETH left the Ethereum Foundation wallet, it marked local price tops, according to the analytics firm. Santiment does clarify, however, that Ethereum Foundation transactions prior to that did not indicate price tops.
Ethereum is trading at $1,831 at time of writing. The second-ranked crypto asset by market cap is up 1.86% in the past 24 hours.
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