Cryptoquant said: Ethereum is ready for growth

The Ethereum market is experiencing an unstable period, but some analysts see positive signals. According to the MVRV indicator, the price of ETH is now in the underestimation zone. With MVRV less than 1, the cost of the coin is lower than the average level at which most participants acquire an asset, including large investors.

Such periods are often accompanied by the activation of institutional players. The history of past bull cycles indicates that the MVRV departure below 1 can lead to a sharp increase in interest in the purchase. As a result, users get the opportunity to purchase an asset at an attractive cost.

Statistics also show an increase in the number of addresses that only accumulate ETH and never withdraws funds. Such a pattern speaks of long -term confidence in the crypto acting, because the owners prefer to hold the coins, waiting for future growth. A similar model of behavior usually occurs when large participants see the fundamental potential of the network.

Realized Price for such holders is focused on $ 2200 – $ 2300, which corresponds to the current indicators. This level can be serious support, since when the quotes are reduced below, active demand appears below. If the price falls even more, a significant part of the market can begin to massively redeem the digital asset.

The situation is complicated by the economic policy of the USA. The Trump administration takes strict tariff measures and adheres to a restraining monetary strategy, which can exert lower pressure on risky assets. At the same time, Ethereum retains the status of the 2nd on the capitalization of cryptocurrency and remains an attractive tool for long-term investors.

According to analysts, strong fundamental indicators of the network can attract even more large wallets. Institutional funds focused on long -term profits often use periods of underestimation to replenish stocks.

Author

Peter Ivanov