Ethereum

ETH is in the “opportunity zone” – what does that mean?

After a sudden 10% increase in the ETH price, Santiment provided some interesting on-chain and market metrics that show the asset is within an “opportunity zone”.

ETH MVRV indicator

Opportunity and Sell Zones are determined by the MVRV Index, which is the ratio between the total market value of the asset and its actual value. With the help of the indicator, traders can determine whether an asset is overbought or oversold.

https://twitter.com/santimentfeed/status/1471220318907764737?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
While every transaction in the cryptocurrency market carries some risk, indicators like the MVRV show the current extent of the actual trend. Whenever large Ethereum holders sell their assets more aggressively than usual, the MVRV ratio tends to drop faster and determines whether there is room for recovery.

With the MVRV indicator currently hovering around -10%, Ethereum is being oversold by the main holders and is actually moving within the “opportunity zone” which, according to market history, is an accurate indicator of the local bottom.

While it can give traders an indication of a short-term trend reversal, this indicator is not designed to give a signal about the long-term market situation. Before climbing 10%, the index hit a four-month low. The last time the MVRV rate was near -10% was in early December.

At press time, Ethereum is trading at $ 4,038 with no difficulty breaking the expected $ 4,000 resistance. ETH has been moving within a short-term local downward trend since December 1st.

Source: TradingView

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Follow the Youtube Channel | Subscribe to telegram channel | Follow Facebook page

CoinX

Recent Posts

Gate.io Launches USDE Financial Products with Annualized Returns of Up to 54%, Ushering in a High-Return Era for Stablecoin Investments

Nov 18th, Panama - Gate.io, a global leader in digital asset trading, has officially unveiled…

9 minutes ago

Bitdeer Convertible Notes Worth $360 Million Offered for Expansion Efforts

The Bitdeer convertible notes offer a 42.5% conversion premium, allowing conversion into cash with the…

38 minutes ago

Sui Foundation Enters into Strategic Partnership with Franklin Templeton Digital Assets

Grand Cayman, Cayman Islands, 22nd November 2024, Chainwire

1 hour ago

Best Cryptos to Invest in December 2024: Qubetics Surges Past $2.6M as Solana Records Big Whale Pump and Polkadot Aims for $6

Best Cryptos to Invest in December 2024: Qubetics surges past $2.6M, Solana’s whale pump ignites…

2 hours ago

Bitcoin Trader Turned $100M in His 20s—Now Reveals 5 Altcoins to Build a $50M Portfolio, With Memecoins Leading the Way!

As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…

4 hours ago

Which Crypto Will Explode in the 2024-2025 Bull Run?

With the crypto market reaching new peaks, many are eager to discover digital currencies poised…

4 hours ago

This website uses cookies.