Ethereum MVRV Ratio Has Recently Indicated Negative Momentum
According to the latest weekly report from , the MVRV ratio has recently been below its 180-day moving average (MA). The “Market Value to Realized Value (MVRV) ratio” refers to an indicator that measures the ratio between the Ethereum market cap and realized cap.
The “realized cap” here is a capitalization model for ETH that assumes the true value of any coin in circulation is the price at which it was last moved on the blockchain. This is unlike the market cap, of course, which calculates the asset’s total value using the current spot price.
The two metrics have gone through a cross in recent days | Source:When the MVRV ratio is above the 1 mark, it means that the average investor is sitting on some profits right now, while it being below the level implies the dominance of loss in the market. From the graph, it’s visible that the Ethereum MVRV ratio observed some rise as the rally started at the start of this year. During this period, the indicator remained above its 180-day MA.
As is apparent from the chart, the Ethereum MVRV ratio has very recently just started to break above this mark, following the rally towards the $1,800 level. It’s still very early in the breakout, though, so it’s unclear if it will actually sustain there.
“It seems that the hangover from the 2022 bear is still being slowly worked through,” says the report. It’s not something new that ETH is going through a phase like this; as the graph highlights, the asset has also faced similar periods of uncertainty in the past.ETH Price
At the time of writing, Ethereum is trading around $1,800, up 1% in the past week.ETH has enjoyed some bullish momentum recently | Source: