- Ethereum’s MVRV ratio indicates an undervalued market.
- Whale activity is surging, with 44% of addresses driving the market.
Ethereum’s [ETH] Market Value to Realized Value (MVRV) ratio was 0.9 at press time. For the uninitiated, the formation of new highs usually precedes such low MVRV levels.
Historically, MVRV ratios below 1 have been excellent entry points for ETH investors. Now that the ratio is showing undervaluation, everything seems in place for a potential bullish reversal.
Source: X
ETH price action leans bullish
ETH prices are currently testing a key demand zone on the weekly chart at around $1.6K. With the recent change of trend to bearish, this price level could be critical in determining its next move.
On shorter time frames, the king altcoin is showing signs of a bullish reversal, further fueling optimism.
In fact, Ethereum has already surged by 2.57% at press time, outperforming most of the top ten cryptocurrencies. This upward momentum is a strong technical indicator for dip buyers and whales to enter.
Source: TradingView
Whale activity points to potential rally
Consequently, the activity concentration data from IntoTheBlock indicated that 44% of addresses pushing the market activity leant on the whales.
With an increasing overall whale activity, ETH price rally to test the flag pattern seems inevitable. Whales are often seen as market movers, and their increased participation suggests confidence in ETH’s short-term potential.
Source: IntoTheBlock
ETH’s converging low MVRV ratio and bullish whale sentiment presents an intriguing bullish setup for short-term altcoin appreciation.
These confluencing developments are significant precedents to major price rallies, thereby making the current setup particularly noteworthy among the market participants.
With Ethereum testing a significant demand zone and whales increasing their activity, it is all set for an imminent bullish rally.
For investors, this could be a golden opportunity to take advantage of the ETH undervaluation.
