Ethereum may be nearing an “opportunity zone,” where prices typically rebound
According to SanimentEthereum may be approaching an “opportunity zone,” where prices typically bounce.
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, inferring the chances of future price movement based on probability. MVRV, or Market Value to Realized Value, is a ratio that indicates whether the price of an asset is fair or not. As a standalone metric, MVRV could be used to infer market ups and downs.
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 of May also saw a huge increase in supply on exchanges as people rushed to exit their positions, compared to last year’s trend of lower exchange balances. This had an impact on the price as Ethereum fell to $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.
By glass knot alerts, the number of ETH addresses holding more than 10 coins just hit 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 talks about the contradiction between his desire to see Ethereum become a system closer to Bitcoin and the realization that getting there requires a lot of active and coordinated changes in the short term.
Buterin also highlighted his desire to see Ethereum “become an L1 that can survive truly extreme circumstances.”
