Ethereum Still Remains Hovering In The "Opportunity Zone" - Know How?

Ethereum Still Remains Hovering In The "Opportunity Zone" - Know How?

2021-12-17 | Daniel Smith

Ethereum Still Remains Hovering In The "Opportunity Zone" - Know How?

Following the unexpected increase in the price of Ethereum on the cryptocurrency market, Santiment has presented an intriguing on-chain and market statistic that implies the asset is heading in the "opportunity zone," and this is what it implies. The MVRV metric The MVRV indicator, which is the ratio of an asset's overall market value to its realized value, determines the chance and sell zones. Traders may use the index to assess whether an investment is overvalued or oversold. Although every transaction on the cryptocurrency market carries certain dangers, metrics such as MVRV illustrate the present extent of the overall trend. When major Ethereum owners sell their assets very forcefully than normal, the MVRV ratio diminishes quicker, determining whether or not there is room for a rebound. Is Ethereum currently in the potential vicinity? As per the MVRV index, which is now moving at around -10%, Ethereum has been massively oversold by major investors and is really going in the "opportunity zone," which, in the past, has been a reliable signal of the local bottom. Whereas the ratio may provide traders with a clue of a short-term trend reversal, the criterion is not intended to provide information about the market's long-term state. Before the prior 10% increase, the indicator had touched a four-month low. The very last time the MVRV ratio got close to -10 percent was in early December. Ethereum is currently selling at $3,738, having broken below the earlier projected $4,000 barrier. From December 1, Ether has been in a short-term local downturn.

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