🚨 Ethereum’s MVRV Z-Score in Focus
On August 13th, Ethereum’s MVRV Z-Score reached the same level observed in March 2024 — a period after which ETH failed to deliver strong performance.
The MVRV Z-Score measures the deviation between market cap and realized cap, adjusted by historical volatility. It helps identify periods of market euphoria and attractive accumulation opportunities.
📊 Looking at the historical trend, the metric currently sits below the orange on-chain indecision zone. In the past, this region has acted both as a local resistance and a pullback area, depending on whether the market was in a bull or bear phase.
➡️ For a more optimistic outlook, the indicator needs to break above the August peak (1.33). Today it stands at 0.9, which suggests Ethereum may still face a period of sideways consolidation and potential selling pressure. In other words, a reading of 0.9 is considerably low for the start of a strong bullish cycle.
🔎 Tracking the MVRV Z-Score daily is key to understanding whether speculation in the market is increasing or fading.
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