With a daily price increase of over 10% on Ethereum, the altcoin is well on its way to finding prices beyond the last ATH of $ 3955. The price passed $ 3,200 on May 3, and in less than a week the price is in detection mode. The altcoins The MVRV-Z value, which represents the ratio between market capitalization and realized upper limit as well as the standard deviation of market capitalization, is now at its highest level since January 2018. This is a bullish signal for Ethereum in the long term.
According to on-chain analysts, ETH is undervalued even at the current price level. It is expected that the triple halving will lead to a price recovery at ETH. The triple halvening is the upcoming equivalent of 3 halving events for ETH, which will result in a 90% decrease in miners’ selling pressure.
A decline in selling pressure is bullish for ETH as the concentration of large HODLers makes a cascading sell-off likely. Given the increasing daily transactions on the network, due to the increasing popularity of automated market makers like SUSHI and UNI, the exchange of tokens for ETH is optimistic. In addition, DEX have a total trading volume of $ 432 billion at ETH in the past 12 months and over 2 million addresses are traded.
In addition to trading addresses on DEXes, the number of Ethereum addresses received from spot exchanges, the 7-day moving average has hit a 3-year high of 1,655.57. The previous 3-year high was reached in early January 2021. This is important for the price of the altcoin to rebound, as the demand between exchanges and participating traders largely affects the price. In the case of large HODLers, the concentration is low, the ETH in circulation is the driver for liquidity and volatility.
Based on data from Skew and the above metrics, the likelihood that ETH price will exceed $ 6,000 before the end of 2021 is now 19%. This probability has changed during the rally and can be seen in the graph below.
Although the probability of exceeding $ 5000 is higher based on the table above, exceeding $ 6000 would put Ethereum well above other Altcoins. At this rate of growth in the ETH price, the current price level is the ideal buying zone in the interests of retailers.
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