ETH is down 33% from its all time high as traders continue to buy the dip as we can see more on the latest Ethereum news today.
The market value of ETH has taken a huge slump and analysis shows that some bullish indicators show up when traders buy the dip. ETH is falling 33% from its all-time high in November 2021. Ether’s market value has taken a huge plunge in the past 24 hours, falling 10%. At the time of writing, it looks like ETH hit above $ 3,100 on Friday morning, and traders wondered if that is the low point for the coin.
ETH 24-hour price chart (source: Coingecko)
Looking at the analysts, the ETH MVRV expects a painful level that traders have been feeling since July last year, and from that point on the price rose 188%. MVRV is the ratio of market value to realized value of the market capitalization of the asset versus the realized capitalization. By comparing these metrics, MVRV can be used to get a sense of when the price is above or below fair value and to learn more about market profitability. The extreme deviations between market value and realized value can identify the market highs and lows as they reflect periods of extreme unrealized losses and gains by investors.
Another indicator is the number of active ETH addresses compared to the ETH asset price, which looks positive. Active counterparts rose while asset price fell, showing that market participants are active in the downturn market, can buy the slump and stabilize the market. The first week of 2022 doesn’t look too good for ETH as the entire market is heading south despite good performance in 2021. Last year, the market value of Ether rose over 450%, hitting an all-time high of $ 4,878 in November, while the metric has risen nearly 170 percent since the start of the year.
2022 is the year of the merger for Ethereum, with the blockchain changing the consensus algorithm from Proof of Work to Proof of Stake, but things are going well so far and we could soon see a defining moment for the Ethereum ecosystem.
Overview of the cryptocurrency market. Source Quantifying Crypto
As recently reported, Ethereum is losing its dominance in Defi and could regain some ground after the ETH 2.0 update. Analysts at the investment bank, including CEO Nikolaos Panigirtzouglu, noted that Ethereum is losing its dominance in the decentralized finance ecosystem.
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