Ethereum has recently outpaced Bitcoin in terms of MVRV ratio growth, suggesting a potential price increase in the near future.
Ethereum’s Recent Performance
Over the past week, Ethereum’s price has risen by nearly 3%, even as selling pressure remains high. Unlike most cryptocurrencies experiencing declines, Ethereum [ETH] has diverged from the market trend, showing strength where Bitcoin [BTC] has not. This performance indicates a possible bullish rally for Ethereum.
Ethereum Outshines Bitcoin
Data from CoinMarketCap reveals that Ethereum’s bulls have been active, driving the token’s price upward. As of now, ETH is trading at $3,575.26 with a market capitalization exceeding $437 billion.
Prominent crypto analyst Ki Young Ju highlighted this trend in a recent tweet, noting the rising MVRV ratio for ETH. This increase suggests that Ethereum’s market value is growing relative to its on-chain fundamentals, surpassing Bitcoin in MVRV ratio growth. The tweet also mentioned that the current ETF situation might favor Ethereum exclusively. Historically, a surge in ETH has often led other altcoins to follow suit.
We’re entering early alt season.$ETH MVRV is rising faster than BTC MVRV, suggesting ETH market is heating up relative to its on-chain fundamentals.
Given the current ETF situation, this might be an ETH-only season. Historically, when ETH surges, other alts tend to follow. pic.twitter.com/YHq5YzkBlD
— Ki Young Ju (@ki_young_ju) June 19, 2024
Potential for a Bull Rally
Given the data indicating a bullish trend for Ethereum, we conducted an analysis of its on-chain metrics. According to CryptoQuant, ETH’s net deposits on exchanges are high compared to the last seven days’ average, indicating persistent selling pressure. Additionally, the Coinbase premium is negative, reflecting a dominant selling sentiment among US investors. However, the Korea premium remains positive, suggesting strong buying interest from Korean investors.
Several technical indicators also support a bullish outlook for Ethereum. The MACD shows potential for a bullish crossover, while the Relative Strength Index (RSI) has ticked upwards to a neutral position. The Chaikin Money Flow (CMF) is also moving north, pointing towards a likely price increase.
Our analysis suggests that ETH might first target $3,660, where increased liquidation could lead to short-term price corrections. A successful breakout above this level could propel ETH to $3,800. Conversely, if bearish trends prevail, ETH might drop to $3,280 this week.
