Ethereum (ETH) has entered the “danger zone” according to Santiment
On-chain analytics platform Santiment is warning investors that Ethereum (ETH) is at risk of falling further based on a key metric.
In a new report from the platform called Based on the 7-day market value to realized value (MVRV) of ETH, the second largest cryptocurrency by market cap is currently in the “danger zone”.
“ETH’s MVRV 7D, which measures short-term profit/loss for holders, shows that ETH has entered a dangerous zone as the indicator hits a three-month high that has short-term holders sold off sharply.”
MVRV 7D of ETH | Source: Santiment
MVRV is the ratio between the market cap and the actual capitalization of a coin. An increased MVRV value indicates a high paper yield and thus an investor’s ability to liquidate his assets profitably.
On the other hand, a low MVRV indicates a low paper yield and is an indication that an asset is undervalued or in low demand.
According to Santiment, a decline in Ethereum’s price and MVRV could be a good thing for the second-largest cryptocurrency.
“Price and MVRV declines in the coming days should contribute to the price pullback and create a good opportunity for investors.”
Santiment also cautioned that Ethereum’s price action is showing a bearish signal, saying that bulls need to strengthen to avoid a potential sell-off.
“After making a deep low in January 2022, ETH made a higher low in February. The bulls need to break out of the $3100-$3200 resistance area to set a higher high and continue the uptrend. .
Otherwise, the price will see a big sell-off below $2,000.”
Source: Santiment
Ethereum is trading at $2,661 at press time.
You can see the ETH price here.
Join Bitcoin Magazine Telegram to follow news and comment on this article: https://t.me/coincunews
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
SN_Nour
According to Dailyhodl
Follow the Youtube Channel | Subscribe to the Telegram channel | Follow the Facebook page
Author
Market
Ethereum (ETH) has entered the “danger zone” according to Santiment
On-chain analytics platform Santiment is warning investors that Ethereum (ETH) is at risk of falling further based on a key metric.
In a new report from the platform called Based on the 7-day market value to realized value (MVRV) of ETH, the second largest cryptocurrency by market cap is currently in the “danger zone”.
“ETH’s MVRV 7D, which measures short-term profit/loss for holders, shows that ETH has entered a dangerous zone as the indicator hits a three-month high that has short-term holders sold off sharply.”
MVRV 7D of ETH | Source: Santiment
MVRV is the ratio between the market cap and the actual capitalization of a coin. An increased MVRV value indicates a high paper yield and thus an investor’s ability to liquidate his assets profitably.
On the other hand, a low MVRV indicates a low paper yield and is an indication that an asset is undervalued or in low demand.
According to Santiment, a decline in Ethereum’s price and MVRV could be a good thing for the second-largest cryptocurrency.
“Price and MVRV declines in the coming days should contribute to the price pullback and create a good opportunity for investors.”
Santiment also cautioned that Ethereum’s price action is showing a bearish signal, saying that bulls need to strengthen to avoid a potential sell-off.
“After making a deep low in January 2022, ETH made a higher low in February. The bulls need to break out of the $3100-$3200 resistance area to set a higher high and continue the uptrend. .
Otherwise, the price will see a big sell-off below $2,000.”
Source: Santiment
Ethereum is trading at $2,661 at press time.
You can see the ETH price here.
Join Bitcoin Magazine Telegram to follow news and comment on this article: https://t.me/coincunews
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
SN_Nour
According to Dailyhodl
Follow the Youtube Channel | Subscribe to the Telegram channel | Follow the Facebook page
Other Posts
Related Posts
News
90% Of Stablecoin Transaction Volumes Have No Participation From Real Users
News
Sui Token Supply Is Controversial When Over 84% Of Staked Tokens Are Controlled By Founders
News
Bitfinex Data Breach Is Now Causing Controversy, Tether CEO Voices Rebuttal
News
New Coinbase Class Action Lawsuit Is Attacking Exchange With Securities Listing Charges
News
90% Of Stablecoin Transaction Volumes Have No Participation From Real Users
Knowledge
US Election Predictions: The Effects And Importance Of The New US President
News
