One metric indicates that Ethereum (ETH) could be headed into an “opportunity zone,” according to cryptanalysis firm Santiment.
The firm notes in a new analysis that ETH’s 30-day market value to realized value (MVRV), which traders use to spot overbought or oversold conditions, is now out of the “danger zone” and heading towards the “opportunity zone”, an area where ETH prices have historically bottomed out.
MVRV is the ratio of an asset’s current market capitalization divided by its realized capitalization, that is, the value of all ETH measured at the price at which it was purchased. MVRV 30-Day is a time-limited metric that only looks at that ratio between tokens that have moved at least once in the last 30 days.
Santiment also points out that the recent high of local ETH prices coincided with the Ethereum Foundation moving 14,999 ETH to the Kraken cryptocurrency exchange over the weekend.
“With the ETH foundation moving 14,999 coins to Kraken, it can be argued that this move coincided perfectly with Ethereum’s local price ceiling. Our vision covers the massive increase in active deposits and potential dip buying opportunities ahead.”
The last three times a significant amount of ETH left the Ethereum Foundation wallet, marking local price highs, according to the analytics firm. However, Santiment clarifies that the Ethereum Foundation transactions before that did not indicate maximum prices.
Ethereum is trading at $1,831 at the time of writing. The second-ranked crypto asset by market capitalization is up 1.86% in the past 24 hours.
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