Taking a closer look at leading smart contract platform ETH, Santiment says it’s looking at the MVRV (market to real value) index, which divides an asset’s market capitalization by its actual value. its economics. Analysts use the MVRV metric to identify market tops and bottoms.
According to the crypto insights firm, the MVRV index is at a six-month low, implying less risk for new entrants to the market.
“Ethereum bottoms out at $3,118… is it time to panic? Well, according to ETH’s average MVRV, this is the extent to which traders have felt the most ‘pain’ since July and the price has rallied +118% from that pain point. Also, active addresses relative to price seem quite bullish. ”
Ethereum is changing hands at $3,194 at press time, down 17.5% from its seven-day high of $3,878.
Tithi Luadthong