Ethereum Dips to $3,500—But MVRV Suggests This Bull Run Isn’t Done Yet

Ethereum takes a breather after its latest rally—but the smart money says don't count it out.

MVRV flashes bullish signal as ETH cools off

The network's Market Value to Realized Value ratio—a favorite of crypto OGs—hints this pullback is just pit-stop fuel for the next leg up. Meanwhile, Wall Street 'experts' still can't decide if crypto is a scam or the future (spoiler: it's both).

Active addresses surge while paper hands panic-sell

On-chain data shows retail traders dumping positions even as institutional wallets keep stacking. Classic case of weak hands meeting diamond hands—with ETH's fundamentals looking stronger than a banker's martini habit.

ETH MVRV Ratio In 7-Year Downtrend 

In a Friday post on the X platform, crypto analyst Burak Kesmeci said that the ethereum price might still have something in the tank despite its struggles going into the weekend. This evaluation is based on the MVRV ratio, which measures the ratio between an asset’s market capitalization and realized capitalization.

The Market Value to Realized Value (MVRV) ratio, as the name suggests, is typically used to evaluate whether a cryptocurrency (ETH, in this case) is overvalued or not. According to on-chain analytics firm CryptoQuant, an overvalued asset usually has an MVRV ratio greater than 3.7 while a ratio below 1 indicates undervaluation.

Kesmeci explained in his post that the ETH MVRV has been in a downtrend since 2018 and may be close to breaking it. However, as shown in the chart, Ether’s MVRV recently suffered rejection at a long-term resistance level — which explains the level of profit-taking seen in the past few days.

Nonetheless, Kesmeci still expects Ethereum to still break this seven-year resistance level, considering the institutional interest being enjoyed by ETH at the moment. For instance, as the on-chain analyst duly noted, the US-based spot ETH ETFs have seen a record amount of capital inflows in the past few weeks.

As for the altcoin’s movement, Kesmeci expects the Ethereum price to resume its upward trend as long as the MVRV ratio stays above the 365-day simple moving average (white). If this remains the case, a return above $4,000 for the second-largest cryptocurrency might then come sooner rather than later.

Ethereum Price At A Glance

As of this writing, the price of ETH stands at around $3,523, reflecting a 5% decline in the past 24 hours.