Main navigation

Ethereum Approaches "Opportunity" Zone, As Seen in This Metric by Santiment

Tue, 05/17/2022 - 13:04
article image
Tomiwabold Olajide
Ethereum may be nearing an "opportunity zone," where prices typically rebound
Ethereum Approaches "Opportunity" Zone, As Seen in This Metric by Santiment
Cover image via

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News

According to Santiment, Ethereum may be nearing an "opportunity zone," where prices typically rebound.

In a recent Santiment Insights report, the on-chain analytics platform notes, "ETH's MVRV 90D, which measures the mid-term profit/loss of holders, is showing that we are almost into the opportunity zone, which historically saw a local bottom being developed with a decent R/R."

Santiment's MVRV indicates the sentimental mood surrounding an asset at any given time, deducing the chances of future price movement based on probability. MVRV, or Market Value to Realized Value, is a ratio that indicates if the price of an asset is fair or not. As a standalone metric, MVRV could be used to infer market tops and bottoms.

Santiment Insights
ETH MVRV90D , Courtesy: Sanbase

Santiment also reports that Ethereum saw one of its highest weekly trading volumes despite market conditions, stating "this week saw the highest trading volume for ETH (even more than the previous meltdown in Jan 2022) and it looks like that's some decent capitulation volume."

The first day in May also saw a huge increase in supply on exchanges as folks rushed to exit their positions, as compared to last year's trend of declining exchange balances. This impacted the price as Ethereum fell to lows of $1,701 on May 12.

In the latest market rebound, Ethereum has risen by nearly 3% in the past 24 hours to reach intraday highs of $2,095, seen at the time of writing. Ethereum currently trades at $2,082.

Per Glassnode alerts, the ETH number of addresses holding more than 10 coins just reached a 16-month high of 289,240, suggesting either an influx of large holders or simply retail holders increasing their supply.

Ethereum co-founder bares his inner struggles

In a recent thread of tweets, Ethereum co-founder Vitalik Buterin bares his inner struggles, which he calls "some still open contradictions in my thoughts and my values."

He speaks on the contradiction between his desire to see Ethereum become a more Bitcoin-like system and the realization that getting there requires quite a lot of active, coordinated short-term change.

Buterin also highlighted his desire to see Ethereum "become an L1 that can survive truly extreme circumstances."

article image
About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.