Ethereum MVRV Ratio Is Retesting Its 180-Day SMA Right Now
The “Market Value to Realized Value (MVRV) ratio” is an indicator that measures the ratio between the Ethereum market cap and realized cap. The former is naturally just the total supply valuation at its spot price. At the same time, the latter is an on-chain capitalization model that calculates the value differently.
The realized cap assumes that the real value of any coin in circulation isn’t the spot price (which the market cap refers to) but the price at which it was last bought/transferred on the blockchain.
The value of the metric seems to have been going up in recent days | Source:The 180-day SMA of the ETH MVRV ratio has interestingly held significance for the cryptocurrency. According to Ali, “Ethereum market cycles transition from bearish to bullish when the MVRV (blue line) breaks strongly above the MVRV 180-day SMA (red line).”
During the bear market last year, the ratio had been below the 180-day SMA line, but with the rally that began this year in January, the metric had managed to break above the level, and bullish winds supported the asset once more. During the recent struggle for the asset, however, the MVRV has again slipped under the level.
Nonetheless, in the past few days, the ETH MVRV has been trending up a bit and approaching another retest of this historical junction between bearish and bullish trends. It remains to be seen whether a retest will happen in the coming days for Ethereum and if a break towards the bullish territory can be found.ETH Price
Looks like ETH has been trending sideways in the past few days | Source: