Ethereum Surges Nearly 10% As MVRV Ratio Drops Below 1—Bigger Rally Incoming?
Ethereum's price has recently increased by 10% after a volatile week, reflecting Bitcoin's market movements. On-chain data indicates Ethereum may be entering an accumulation phase, with the Market Value to Realized Value (MVRV) ratio falling below 1, suggesting it is undervalued. Large-scale investors are increasing their ETH holdings, indicating potential support at key price levels. Historically, when the MVRV ratio drops below 1, it precedes significant price recoveries. There has also been a rise in ETH accumulation addresses, indicating strategic buying by large investors at the $2,200–$2,300 price range. Mac highlights that macroeconomic factors, including US liquidity policies, could impact Ethereum's price, with stricter monetary policies potentially leading to sharp declines.
