25 February, 2024



Ethereum Appears To Be on the Cusp of a Formal Bull Market, Supported by Its MVRV Ratio

1 year ago

10 Feb, 2024

Notably, the number of transactions on the Ethereum blockchain has nearly doubled since July 2020 and is now hovering close to record levels set in June 2021. This performance indicates that investors are becoming more confident in ETH as a viable investment option.

The MVRV ratio (light purple line) measures Ethereum’s price health. This ratio compares the market value of ETH tokens with their realized value or average purchase price. The MVRV is slowly creeping closer to its 365-day moving average. When this happens, it indicates a cryptocurrency is positioned for a bull run.

Positive liveliness metrics such as high transactions and a rising MVRV all support the activity of Ethereum’s network and its potential for price increases. As such, investors should keep an eye on Ethereum’s performance in the coming weeks to gauge its prospects. 

Source: Sanbase

By keeping up with these key indicators, investors can make better-informed decisions about their Ethereum investments. With the right information, investors can capitalize on market swings and maximize profits in the fast-paced world of cryptocurrency

Total contract calls (interactions between and within smart contracts) have also increased to new highs, further reinforcing Ethereum’s bullish momentum. This is a sign that cryptocurrency traders are actively using the network for purposes such as decentralized finance (DeFi). However, active addresses (user proxies) have yet to recover from their low levels in June 2021.

Conclusion

Ethereum is in a strong position for bullish growth due to substantial network activity, rising MVRV ratios, and increasing contract calls. However, cryptocurrency investments can still be volatile and high-risk.

Investors should stay informed about market trends and use appropriate caution when investing in ETH. Check our Dashboard for updated data for all of the charts mentioned in this thread. 

Disclaimer:  This article does not constitute financial advice and is for educational purposes only. Please consult with a qualified professional before making any investment decisions.