The bearish warning came from on-chain analytics firm Santiment. The altcoin project where the alarms were sounded was the leading altcoin Ethereum. The firm is warning ETH traders with some signals that could bring headwinds in the coming days. Santiment says that Ethereum’s MVRV value (from market value to realized value) puts ETH in a vulnerable spot.
Ethereum’s fall may affect other altcoin projects!
Santiment’s warnings highlighted that the MVRV value of Ethereum (ETH) is currently approaching a dangerous point. MVRV or Market Value to Realized Value is calculated by dividing the market value by the daily realized value. By using the MVRV Ratio, bottom or peak levels in the market can be predicted. On Santiment, MVRV for Ethereum reports that the rate is currently approaching the risk zone. ETH traders can follow them for short and long term…
Santiment says Ethereum’s MVRV Ratio is hovering in a high-risk area:
Ethereum short-term 30-day MVRV looks close to a very ‘hard’ level of around 10%, but there is room for growth to around 25%. We’re already in super high, overvalued, very risky territory on long-term 365-day MVRV.
Santiment also says that Ethereum’s inflows to exchanges have been accelerating lately.
When Ethereum’s MVRV Ratio dropped to these levels earlier, its price fell hard. Now experts say the 30-day MVRV rate is now approaching the “difficulty zone.” However, the 25% rise is still on the table for ETH price. Analysts think that the rise may continue in the short term:
It’s starting to rally a bit: It looks like the price may face some more selling pressure to absorb around the resistance level. For Ethereum, this can be a bit of a challenge.
Long term is more risky! The 365-day MVRV rate has approached “too risky, overvalued” levels, according to experts. Santiment also states that a selling pressure may occur considering the amount of ETH transferred to exchanges. As a result, according to the data, it is thought that the Ethereum price may fall sharply in the coming days and drag other altcoin projects with it.
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