CryptoQuant analyst Venturefounder made a number of implications, citing three on-chain indicators. Analyst, Ethereum He commented on how the price may progress in the coming days.
a few $ETH valuation on-chain indicators:
one) #MVRV Z-Score is a standard deviation that pulls out the extremes of price and realized value. The higher Z = more overvaluation, vice versa
ETH Z-score still in the green zone, but in the last cycle, ETH remained here for 1.5 years pic.twitter.com/PQ3eldSSsr
— venturefoundΞr (@venturefounder) December 12, 2022
The analyst primarily addressed the “ETH MVRV Z” score, which highlights price and realized value. The larger the score, the greater the rate of overvaluation. Second on-chain data ETH NUPL value. The value, also known as “net unrealized profit and loss”, is the difference between the market value and the realized value divided by the market value. The last noteworthy data is the “percentage of Ethereum supply that makes a profit”.
The ETH Z-score currently remains in the green zone, according to the analyst. However, in the last cycle, Ethereum maintained this status for about 18 months.
According to ETH NUPL, the indicator remains in the capitulation zone. However, with only three months since the start of the Ethereum bear market, it has been less time than in the previous cycle.
The percentage of supply in profits on Ethereum investment recently hit a new low of 40%. Indeed, it is still far from the level below 30% recorded in 2018 and March 2020. In addition, unlike the previous cycle, Ethereum’s price has not shown a bearish trend since June 2022 but traded in a range.
JPMorgan Shares Key Forecast for Ethereum
completed in September Ethereum Mergepassed the ETH blockchain to proof-of-stake consensus. On the other hand, JPMorgan analysts also named a new update that could be a catalyst for ETH price.
“Ethereum Merge and Surge will expand the uses of blockchain, including financial services. We believe this could be a critical catalyst for price.”
The Surge update is designed to reduce network costs and make the network more secure and faster. According to JPMorgan analysts, it will take 6-12 months for this update to be a catalyst.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.