Ethereum Price Analysis: On-Chain Data Points to Potential Recovery
Ethereum on-chain signals point to sharp price surge
When looking at Ethereum’s Market Capitalization and Realized Value (MVRV) ZZ score, it fell to 0.52, indicating a level of undervaluation. Historically, a score above 2.20 suggests that prices are nearing cycle highs. For example, in 2021, when Ethereum hit $4,819, the MVRV indicator was 3.35. Subsequently, the price dropped to $2,440, and the altcoin has struggled to surpass $4,000 since then.
However, as indicated by the chart, Ethereum’s MVRV Z-score is now comparable to November 2023 data when the price surged from $1,959 to over $4,000 in four months. If history repeats itself, Ethereum could see a price increase of over 100% by the end of the year. Additionally, the STH-NUPL indicator, which represents net unrealized gains and losses for short-term holders, is in the capitulation zone (red), signaling fear in the market and potentially indicating a bottom for Ethereum.
Ethereum price prediction: Will it rise 100% by the end of the year?
Technical indicators also suggest a potential recovery for Ethereum. Considering the performance pattern in Q1 2024, where Ethereum experienced a significant correction followed by a rebound, there is a chance that history may repeat itself. The Relative Strength Index (RSI) points to oversold levels, indicating a possible significant rebound. If Ethereum manages to retest $2,871 and sustain buying momentum, it could reach $4,094 in the coming months. However, this prediction could be invalidated if bullish momentum wanes.
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