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To determine if Ether (ETH) is overpriced, one of the benchmarks that has been used has been the Heating up relative to Bitcoin (BTC). However, one analyst argues that the asset may still not be in an overbounded area.
While the MVRV of Ethereum is increasing fast, Ki Young Ju, the CEO of CryptoQuant, said that the active addresses on the Ethereum network are also pumps up transaction volume.
Ju said in a June 19 X post, “ETH MVRV is rising faster than BTC MVRV, suggesting the ETH market is heating up relative to its on-chain fundamentals.”
Ethereum’s Market Dynamics and MVRV
Comparing the amount consumers paid for an item to the current market price reveals whether it is selling above or below its fair value in the MVRV measure. Santiment data shows that Ethereum’s MVRV has surged 29.9% to reach 91.43% over the last 30 days; Bitcoin’s MVRV has dropped 10.8% to 127.41%.
A high MVRV indicates a possible overvaluation and the danger of a sell-off, as it implies the market value of Ether is greater than its actual worth. A falling MVRV, on the other hand, indicates that the market is cooling down because the price is almost at a fair value.
Though the MVRV is high, Ju thinks the projected trading of spot Ether ETFs might stop a sell-off. Referring to SEC Chair Gary Gensler’s ETF trading schedule, which may start as early as July 2, ETF expert Eric Balchunas said, “Given the current ETF situation, this might be an ETH-only season.”
Analyst Predictions and Market Trends
Pointing to Ether’s present price position, pseudonymous crypto technical expert Yoddha noted little consolidation after a morning star formation, indicating a bullish turnaround from the bottom of a downtrend. On June 19, Yoddha wrote: “Ethereum looks ready to go bonkers and is holding the price rather nicely.” “Before the year’s end, it will be more than $10,000. Mark me’s words.
According to CoinMarketCap data, Ethereum is trading at $3,556 as of this writing. Following Consensys’ declaration that the United States Securities and Exchange Commission (SEC) is closing its inquiry on whether ETH qualifies as a security, it ascended again over the pivotal $3,500 threshold on June 18, a 1.37% rise.
Based on TradingView statistics, Ethereum’s market share is also rising noticeably—up 6.62% over the previous seven days. Concurrently, the dominance of Bitcoin has somewhat fallen by 0.23% during the same time. Ethereum’s dominance at the time of publishing is 18.8%; Bitcoin’s is 55.31%.
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