Ethereum Gained 160% The Last Time This On-Chain Indicator Flashed - Will ETH Soar Again?

According to a key on-chain indicator, Ethereum (ETH) may be undervalued at its current market price. The last time ETH was this undervalued was in October 2023, after which it experienced a 160% rally.Ethereum May Be Undervalued, On-Chain Indicator SuggestsEthereum’s current MVRV-Z score suggests that the second-largest cryptocurrency by total market capitalization may be undervalued at its present price. This metric – used to determine whether an asset is overvalued or undervalued – is currently at its lowest level in 17 months.ETH’s low MVRV-Z score indicates that the digital asset may be approaching a local bottom. Notably, the last time this metric was at a similar level in October 2023, ETH surged by 160%.For the uninitiated, the MVRV-Z score compares the difference between an asset’s market value and its realized value to assess overbought or oversold conditions. A high score indicates potential market tops, while a low score suggests possible bottoms.Besides October 2023, Ethereum’s MVRV-Z score has entered the green band two other times – once in December 2022 and again in March 2020. On both occasions, ETH subsequently entered a bullish phase.Additionally, on-chain analytics indicate that crypto whales are quietly accumulating ETH in anticipation of a significant upward move. Data from CryptoQuant reveals that ETH inflows into accumulation addresses have surged to multi-year highs, surpassing levels seen before major bull runs.High inflows into accumulation addresses suggest that institutional investors and large holders anticipate a rise in ETH’s price. This aligns with recent analysis predicting that ETH is poised for a substantial rally this year, potentially driving the digital asset to $9,000.Furthermore, ETH whales – wallet addresses holding between 1,000 and 10,000 ETH – have been aggressively accumulating since July 2024. This coincided with the US Securities and Exchange Commission’s (SEC) approval of the first spot ETH exchange-traded fund (ETF).Is ETH Going To Surprise The Market?Beyond a bullish MVRV-Z score and increasing ETH inflows into accumulation addresses, several other indicators suggest that ETH may be on the verge of a surprise rally, despite prevailing bearish sentiment.Following the recent market pullback, ETH’s weekly Relative Strength Index (RSI) has dropped to a three-year low, fuelling optimism for an imminent rally. However, increasing ETH reserves on exchanges could pose a challenge to upward momentum.Similarly, concerns remain regarding the Ethereum Foundation’s continuous selling of ETH, which may be contributing to price suppression. As of press time, ETH is trading at $2,268, reflecting a 3.7% increase over the past 24 hours.Weiter zum vollständigen Artikel bei NewsBTC Weiter zum vollständigen Artikel bei NewsBTC