The worst appears to be over for Ethereum (ETH), as certain metrics indicate that the bottom is likely in for the second-largest cryptocurrency by market cap. Based on these indicators, ETH seems to be headed toward a new all-time high (ATH), potentially surpassing $4,800.
Data from the onchain analytics platform Glassnode reveals Ethereum's market value to realized value (MVRV) lowest pricing level is at $1,687. This suggests that ETH is unlikely to drop below this level, indicating the bottom is in. After the August 5 market crash, Ethereum dropped to around $2,200, close to the $2,109 MVRV band.
Furthermore, a shift toward accumulation among Ethereum investors shows they are holding onto their assets, expecting higher prices. Glassnode data highlights that the percentage of ETH held on exchanges has significantly decreased to under 10%, reducing selling pressure and preparing ETH for a potential rally.
Glassnode's data also indicates that Ethereum could rise above $5,000, potentially reaching $6,759, the highest MVRV pricing level. Some analysts, like Tyler Durden, predict ETH could even reach $10,000.
The onchain analytics platform Cryptoquant also supports this bullish outlook, highlighting metrics like the Taker Buy-Sell Ratio, which indicates a positive trend as bulls suppress selling pressure.
Ethereum's open interest (OI) is rebounding, currently at $10.81 billion, signaling leveraged players' return to the market. This rise in OI significantly impacts ETH's price, as trading volume in the derivatives market also plays a crucial role.
At the time of writing, Ethereum is trading around $2,590, down over 3% in the last 24 hours according to CoinMarketCap data.
