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Author: Ciaran Lyons, CoinTelegraph; Compiled by: Wuzhu, Bitchain Vision
The key metrics used to determine whether Ethereum is overvalued have been in a “heating” state relative to Bitcoin — although one analyst believes the asset may not have entered the overbought area.
Ki Young Ju, CEO of CryptoQuant, cryptocurrency analysis firm, notedWhile Ethereum’s market value realization value (MVRV) is rising rapidly, transaction volume and active addresses on the Ethereum network have also risen.
“ETH MVRV is rising faster than BTC MVRV, indicatingThe ETH market is heating up relative to its on-chain fundamentals,” Ju wrote in a June 19 X post.
MVRV means that the asset’s transaction price is higher or lower than its fair price, which is essentially the difference between the price paid by the user for the asset and the current market price.
According to Santiment’s data,Compared with Bitcoin in the past 30 days, Ethereum’s MVRV has risen 29.9% to 91.43%, while Bitcoin’s MVRV is the opposite, down 10.8% to 127.41% during the same period.
Ethereum MVRV ratio chart.Source: Santiment
High MVRV means Ethereum’s market value is higher than its actual value—indicating its overvalued valuation, which could trigger potential selling concerns in the future.
When it falls, it indicates that the market is cooling and the price may be approaching its fair value.
However, Ju said,With spot Ethereum ETFs expected to start trading soon, high MVRV is unlikely to scare investors away.
“Given the current ETF situation, this may be an ETH-only season,” Ju added, referring to the timeline for ETF trading, which reportedly said by SEC Chairman Gary Gensler, who said ETF trading will be “in the summer”Starting, while ETF analyst Eric Balchunas said it could start as early as July 2.
Analysts: Ethereum price will rise to $10,000 by the end of 2024
Yoddha, anonymous cryptotechnical analyst, pointed out Ethereum’s current price position on the chart, noting that there has been a slight consolidation – this isA bullish reversal signal appears from the bottom of the downward trend.
Yoddha, anonymous encryption technology analyst, wrote on June 19:“Ethereum prices are maintained quite well and look ready for a crazy upward hike.”
“By the end of the year, Ethereum will cost more than $10,000.Remember my words,” Yoddha added.
According to CoinMarketCap, Ethereum was trading at $3,556 as of the time of this article.
Ethereum has risen by 14.81% in the past 30 days.Source: CoinMarketCap
On June 18, Ethereum climbed back above the key $3,500 mark, up 1.37% after Consensys announced the Securities and Exchange Commission (SEC) concluded its investigation into whether ETH is eligible for securities.
According to TradingView, Ethereum’s dominance in the cryptocurrency market has also grown significantly, up 6.62% in the past seven days.Meanwhile, Bitcoin’s dominance fell slightly during the same period, at 0.23%.
As of this article, Ethereum has dominated 18.8%, while Bitcoin has dominated 55.31%.
