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According to an important indicator of the chain, Ethereum (ETH) can be underestimated 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 may be undervalued, suggests on the chain
Ethereum’s current MVRV-Z points suggest that the second largest Cryptocurrency can be underestimated at its current price. This metric – which is used to determine whether an asset is overvalued or undervalued – is currently at its lowest level of 17 months.
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ETH’s low MVRV-Z points indicates that digital access may approach a local bottom. In particular, last time this metric was at a similar level in October 2023, ETH increased by 160%.
For the uninitiated, the MVRV-Z points compare the difference between an asset market value and its realized value to assess over purchases or oversold conditions. A high score indicates potential market peaks, while a low point suggests possible bottom.
In addition to October 2023, Ethereum’s MVRV-Z points have entered the green band two other times-a time in December 2022 and again in March 2020. On both occasions, ETH then entered a Hauss phase.
In addition, the analysis on the chain indicates that cryptocurities silently accumulate ETH in anticipation of a significant upward movement. Cryptoquant data reveals that ETH inflows to accumulation addresses have increased to multi-year heights and exceed levels seen before large bull runs.
High inflows in accumulation addresses indicate that institutional investors and large holders expect an increase in ETH’s price. This adapts to the latest analysis predicting The fact that ETH is ready for a significant rally this year, which potentially drives digital access to $ 9,000.
Furthermore, ETH whales – wallet addresses that hold between 1,000 and 10,000 ETH – aggressively have gathered since July 2024. This coincided with US Securities and Exchange Commission (Sec) approval by the first place ETH Exchange-Traded Fund (ETF).
Will ETH surprise the market?
In addition to a hooked MVRV-Z point and increasing ETH inflows to accumulation addresses, several other indicators indicate that ETH may be on the verge of a surprise collection, despite prevailing baissey feeling.
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Following the latest market for the market, ETH’s Weekly has relative Strength index (RSI) dropped to a three -year -old low, driving optimism for an imminent rally. However, increasing ETH reserves on exchanges can pose a challenge to upwards.
Similarly, concerns remain for the Ethereum Foundation’s continuous sale by ETH, which can contribute to price intelling. From the press time, ETH is traded at $ 2,268, which reflects an increase of 3.7% over the past 24 hours.
Featured Image from Unsplash, charts from Glassnode, Cryptoquant and TradingView.com
