Ethereum (ETH) Price Has More Room to Go Up, On-Chain Data Suggests

IconCryptoNewsTerminal Staff23 May, 2024

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Ethereum (ETH) Price Has More Room to Go Up, On-Chain Data Suggests

Ethereum (ETH) is showing signs of further growth, according to on-chain data analyzed by Burak Kesmeci of IntoTheBlock. Kesmeci noted that ETH's Market Value to Realized Value (MVRV) ratio, which measures the difference between an asset's market cap and its realized cap, is currently sitting at 1.78. Historically, ETH's MVRV has topped out around 2.5, but in the previous bull cycle reached as high as 3.14. This suggests that the current rally may have further to run. Additionally, Kesmeci found that 91% of ETH investors are currently in profit based on the on-chain cost basis, indicating strong holder sentiment. Moreover, 74% of ETH is being held for more than a year, suggesting long-term bullishness. Finally, 52% of the ETH traded in the past 14 days occurred during US hours, potentially signaling institutional interest. Based on these factors, Kesmeci identified on-chain cost basis support levels at $3,234 and $3,905, where significant amounts of ETH were previously bought. Resistance could be found at $4,800. Overall, the on-chain data suggests that the current Ethereum rally has more room to go and that investors remain optimistic about the asset's long-term prospects.

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