Crypto analytics firm Santiment says Ethereum (ETH) is showing signals that could foreshadow some headwinds for the second-largest digital asset in the near future.
In a new report, Santiment says Ethereum’s MVRV (market value to realized value) is putting ETH in a vulnerable spot. MVRV compares an asset’s total market cap to its realized value and can be used to time market tops and bottoms.
The firm says Ethereum’s MVRV is hovering at a high-risk area.
“Ethereum short-term 30d MVRV seems to be close to a very ‘difficult’ level around 10%, but there is room to grow till around 25%. On longer-term 365d MVRV, we are already super high, super overvalued, very risky zone:”
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Santiment also says inflows of Ethereum to exchanges have accelerated as of late. According to the crypto insights firm, the increased exchange inflows could mean that ETH sees some selling pressure in the short term.
“Is starting to pick up a little bit: seems there might be a little bit more sell-side pressure to be absorbed around price resistance level. That might be a little bit difficult for Ethereum.”
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Santiment says not all of the available data is pointing to bearish pressure for Ethereum. The firm points to a significant surge in active addresses, as well as a huge recent spike in network growth.
“The biggest spike since May. Is this the beginning of a renaissance of Ethereum network? It could also be just a short-term uptick for price reasons or something else.”
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You can read Santiment’s full report on Ethereum here.
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The post This Ethereum On-Chain Metric in Very Risky Zone, According to Crypto Analytics Firm Santiment appeared first on The Daily Hodl.
