Data from Glassnode shows Ethereum is still experiencing negative momentum despite the year-to-date rise that the asset has observed.<\/p>\n
According to the latest weekly report from Glassnode<\/a>, the MVRV ratio has recently been below its 180-day moving average (MA). The \u201cMarket Value to Realized Value (MVRV) ratio<\/a>\u201d refers to an indicator that measures the ratio between the Ethereum market cap and realized cap.<\/p>\n The \u201crealized cap<\/a>\u201d 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\u2019s total value using the current spot price.<\/p>\n Since the price at which each coin was last moved on the network can be assumed to be the price it was bought, the realized cap can be looked at as a sum of the total capital that the investors have used to purchase ETH.<\/p>\n As the MVRV ratio compares the value that the holders are carrying right now (the market cap) against the amount that they have invested into the cryptocurrency, it can provide us with information about their profit\/loss status.<\/p>\n Now, here is a chart that shows the trend in the Ethereum MVRV ratio, as well as its 180-day MA, over the last few years:<\/p>\n\n 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.<\/p>\n From the graph, it\u2019s 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.<\/p>\n \u201cPeriods, where the MVRV Ratio trades above this long-term mean, indicate investor profitability is increasingly meaningful, and is often a signal of a rising market,\u201d explains Glassnode.<\/p>\n In the last few months, though, as the Ethereum price has found some struggle, the metric has gone under its 180-day MA. The analytics firm notes, \u201cdespite the positive market performance for ETH YTD, by this metric the market is still experiencing negative momentum.\u201d<\/p>\n As is apparent from the chart, the Ethereum MVRV ratio has very recently just started to break above this mark, following the rally<\/a> towards the $1,800 level. It\u2019s still very early in the breakout, though, so it\u2019s unclear if it will actually sustain there.<\/p>\n \u201cIt seems that the hangover from the 2022 bear is still being slowly worked through,\u201d says the report. It\u2019s 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.<\/p>\n At the time of writing, Ethereum is trading around $1,800, up 1% in the past week.<\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n Data from Glassnode shows Ethereum is still experiencing negative momentum despite the year-to-date rise that the asset has observed.<\/p>\n According to the latest weekly report from Glassnode<\/a>, the MVRV ratio has recently been below its 180-day moving average (MA). The \u201cMarket Value to Realized Value (MVRV) ratio<\/a>\u201d refers to an indicator that measures the ratio between the Ethereum market cap and realized cap.<\/p>\nETH Price<\/h2>\n
Ethereum MVRV Ratio Has Recently Indicated Negative Momentum<\/h2>\n