A popular crypto analyst says the leading smart contract platform Ethereum (ETH) is oversold and poised to rally. Details of the analyst’s views on the popular altcoin cryptocoin.com‘in.
Is the leading altcoin recovering?
The InvestAnswers expert says that the second-largest crypto asset by market cap is giving signals to 402,000 YouTube subscribers that a price spike is imminent. The analyst points out that Ethereum’s relative strength index (RSI) is at the point where it started a rally in late May of last year, just before finally gaining its all-time high. Expert says:
[ETH’nin] It’s pretty enigmatic when we look at its RSI and compare it to the bottom prices and how those prices broke the 200-day moving average. There is May and June of 2021 and January of 2022. Ethereum has been oversold, which corresponds to historic lows on the price chart that coincide almost perfectly with the 200-day moving average. We are currently below the 200-day moving average like never before. That tells me we should probably make some ETH jumps as we move forward.
The expert then relates the market cap of the leading altcoin to the realized value (MVRV). This value evaluates whether the price of an asset is over- or undervalued relative to its fair market value. Says the analyst:
The RSI is directly mapped to the MVRV Z score, which shows when Ethereum is over or undervalued relative to its fair value. Historically it marked a market peak when the market cap was significantly higher than the realized value… the last market peak we had around May 2021 [oldu]. We only had three of these last year and that corresponds directly to the RSI.
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