Ethereum (ETH) Bottom Is In, Getting Ready For New All-Time High (ATH) As MVRV Pricing Lows Show

The worst looks to be over for Ethereum (ETH), as certain metrics suggest that the bottom is already in for the second-largest crypto by market cap.

Certain metrics are indicating that the worst may be over for Ethereum (ETH) and that the second-largest crypto by market cap has already bottomed out. This bodes well for ETH, which is now set to scale new heights, potentially surpassing its current all-time high (ATH) of $4,800.

Ethereum MVRV Indicates Bottom

Data from Glassnode, an onchain analytics platform, shows that Ethereum’s lowest pricing level for the market value to realized value (MVRV) is at $1,687, suggesting that the bottom is already in for the crypto token. These MVRV pricing levels are designed to indicate how low or high a token will likely get in a market cycle based on unrealized loss or unrealized profits.

Thus, Ethereum is unlikely to drop any lower than the $1,687 price level and instead seems poised to head towards its market top. For context, Ethereum dropped to a low of $2,200 following the market crash on August 5. This price point is close to the second MVRV pricing band of $2,109, which Glassnode highlighted earlier, further suggesting that the crypto has bottomed out.

Meanwhile, a shift to accumulation among Ethereum investors seems to indicate that they are no longer looking to sell their assets but are instead holding in anticipation of higher prices. Data from Glassnode shows that the percentage of ETH’s supply held on exchanges has dropped drastically to below 10%. This is important as it potentially reduces the selling pressure on Ethereum and primes it for a massive rally as long as investors continue to hodl.

According to data from Glassnode, Ethereum could rise above $5,000 and reach as high as $6,759, which is the highest MVRV pricing level for the crypto at the moment. This price point could mark a market top for Ethereum in this bull run, though crypto analysts like Tyler Durden have predicted that the crypto could still reach $10,000.

More Metrics Indicating Imminent Price Rally for ETH

A recent blog post on Cryptoquant, an onchain analytics platform, highlighted two metrics that show that Ethereum is preparing for its next leg up. One is the Taker Buy-Sell Ration, which calculates the ratio of Ethereum buyers to sellers. This metric is said to be turning positive again as Ethereum bulls are regaining strength and suppressing any selling pressure from the bears.

After dropping to $7 billion following the August 5 market crash, Ethereum’s open interest (OI) is once again rising. According to data from Coinglass, the OI is currently at 10.81 billion, indicating that leveraged traders are returning to the scene. This is significant as trading volume in the derivatives market also has a major impact on ETH’s price.

At the last check, Ethereum was trading around $2,590, down over 3% in the last 24 hours, according to data from CoinMarketCap.

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