CryptoQuant, a digital asset analytics firm, has identified a key on-chain metric for Ethereum (ETH) that suggests the altcoin market is poised for a significant price surge. According to the firm, Ethereum’s Market Value to Realized Value (MVRV) indicator is rising at a faster pace than Bitcoin’s (BTC) MVRV. This indicates that the Ethereum market is heating up, and historically, when Ethereum experiences a surge, other altcoins tend to follow suit.
The MVRV ratio measures a digital asset’s market capitalization in relation to its realized capitalization, which represents the value of all assets at the price they were purchased. This metric is commonly used to determine whether a token is overvalued or undervalued.
As of now, Ethereum is trading at $3,514 and has been trading mostly sideways throughout the week. On the other hand, Bitcoin is trading below the critical support level of $65,800, which suggests a potential correction of 8% to 12% towards $60,000, according to CryptoQuant.
Bitcoin’s market is currently at its least bullish point since September 2023, based on CryptoQuant’s bull market cycle indicator, as stated by Julio Moreno, the head of research at CryptoQuant.
It is important to note that the opinions expressed in this article are not investment advice, and investors should conduct their own research before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. The Daily Hodl, where this article was sourced from, does not endorse the buying or selling of any cryptocurrencies or digital assets and is not an investment advisor.
