Ethereum could be approaching an “opportunity zone,” where prices typically bounce
According to SanimentEthereum could be approaching an “opportunity zone,” where prices typically bounce.
In a recent Santiment Insights report, the on-chain analytics platform notes that “ETH’s 90D MVRV, which measures holders’ medium-term profit/loss, shows we are almost in the opportunity zone. , which has historically seen a local fund being developed with decent R/R.”
📊 #Ethereum saw a lot of #bloodbath here in May, and rebounded slightly to ~$2,040. our latest $ETH the analysis covers the highest volume peak of the year, excessively #short funding rates, increased supply on exchanges in May, and much more. 👍 https://t.co/bwlUfz3G9f pic.twitter.com/BJ8R9nVcaB
— Santiment (@santimentfeed) May 16, 2022
Santiment’s MVRV indicates the sentimental mood surrounding an asset at any given time, inferring the chances of future price movement based on probability. MVRV, or Market Value to Realized Value, is a ratio that indicates whether the price of an asset is fair or not. As a standalone metric, MVRV could be used to infer market ups and downs.
Santiment also reports that Ethereum recorded one of its highest weekly trading volumes despite the market conditions, stating that “this week saw the highest trading volume for ETH (even more than the previous collapse in January 2022) and it appears to be a decent amount of capitulation”.
The first day of May also saw a huge increase in supply on exchanges as people rushed to exit their positions, compared to last year’s trend of lower exchange balances. This had an impact on the price as Ethereum fell to $1,701 on May 12.
In the latest market rally, Ethereum is up nearly 3% in the past 24 hours to hit intraday highs of $2,095 seen at the time of writing. Ethereum is currently trading at $2,082.
— glassnode alerts (@glassnodealerts) May 17, 2022
By glass knot alerts, the number of ETH addresses holding more than 10 coins just hit a 16-month high of 289,240, suggesting either an influx of large holders or simply retail holders increasing their supply.
Ethereum co-founder reveals his inner struggles
In a recent thread of tweets, Ethereum co-founder Vitalik Buterin lays bare his inner struggles, which he calls “certain contradictions still open in my thoughts and values”.
Topic: some still open contradictions in my thoughts and values, which I’ve thought about but still don’t feel like I’ve fully resolved.
— vitalik.eth (@VitalikButerin) May 17, 2022
He talks about the contradiction between his desire to see Ethereum become a system closer to Bitcoin and the realization that getting there requires a lot of active and coordinated changes in the short term.
Buterin also highlighted his desire to see Ethereum “become an L1 that can survive really extreme circumstances.”