Ethereum On-Chain Metric Suggests Potential for Altcoin Market Rallies, According to Analytics Firm CryptoQuant
An Ethereum (ETH) on-chain metric suggests the altcoin market could be primed for a price surge, according to the digital asset analytics firm CryptoQuant.
The firm says on the social media platform X that Ethereum’s Market Value to Realized Value (MVRV) indicator is rising faster than Bitcoin’s (BTC) MVRV.
“This suggests that ETH’s market is heating up. Historically, when Ethereum surges, other alts tend to follow.”
MVRV is the ratio of a digital asset’s market capitalization relative to its realized capitalization (the value of all the assets at the price they were bought). It is used to assess whether the token is undervalued or overvalued.
ETH is trading at $3,514 at time of writing. The second-ranked crypto asset by market cap has largely traded sideways this week.
CryptoQuant also notes that Bitcoin is trading below the critical support level of $65,800, which the firm says suggests a potential 8%-12% correction toward $60,000.
BTC is priced at $64,148 at time of writing. The top-ranked crypto asset by market cap is down nearly 1.5% in the past 24 hours and more than 3% in the past week.
Julio Moreno, CryptoQuant’s head of research, says on X that the Bitcoin market is currently at its least bullish point since September 2023, based on its bull market cycle indicator.
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