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Ethereum May Be Undervalued, On-Chain Indicator Suggests
Ethereum’s current MVRV-Z score suggests that the second-largest cryptocurrency by total market capitalization may be undervalued at its present price. This metric – used to determine whether an asset is overvalued or undervalued – is currently at its lowest level in 17 months.
Related Reading
Is ETH Going To Surprise The Market?
Beyond a bullish MVRV-Z score and increasing ETH inflows into accumulation addresses, several other indicators suggest that ETH may be on the verge of a surprise rally, despite prevailing bearish sentiment.
Conclusion
In conclusion, Ethereum’s MVRV-Z score and increasing inflows into accumulation addresses suggest that the digital asset may be on the verge of a surprise rally. However, concerns remain regarding the Ethereum Foundation’s continuous selling of ETH, which may be contributing to price suppression.
FAQs
Q: What is the MVRV-Z score?
A: The MVRV-Z score is a metric used to determine whether an asset is overvalued or undervalued. It compares the difference between an asset’s market value and its realized value.
Q: What is the current MVRV-Z score of ETH?
A: The current MVRV-Z score of ETH is at its lowest level in 17 months.
Q: What are the implications of a low MVRV-Z score on ETH’s price?
A: A low MVRV-Z score suggests that ETH may be undervalued, which could lead to a potential price increase.
Q: What are the factors contributing to the increase in ETH inflows into accumulation addresses?
A: The increase in ETH inflows into accumulation addresses is likely due to institutional investors and large holders anticipating a rise in ETH’s price.
Q: What is the significance of the Ethereum Foundation’s continuous selling of ETH?
A: The Ethereum Foundation’s continuous selling of ETH may be contributing to price suppression and reducing the potential for a price increase.
![Crypto Recovery Pump Incoming!! [DUMP NEARLY OVER – ACT NOW]](https://i.ytimg.com/vi/MrMeVsgZJPU/maxresdefault.jpg "Crypto Recovery Pump Incoming!! [DUMP NEARLY OVER – ACT NOW]")
