Ethereum (ETH) has experienced a positive uptick in its price over the past month, with the altcoin registering a 3.39% increase on the monthly charts. This development comes after a period of stagnation where ETH struggled to maintain any upward momentum.
At the time of writing, Ethereum was trading at $2441, showing gains on both the weekly and daily charts. This uptrend has sparked discussions within the Ethereum community about the future direction of the altcoin. Cryptoquant analyst Burak Kesmeci believes that ETH’s current MVRV levels may present a buying opportunity.
Kesmeci’s analysis reveals that Ethereum’s MVRV score has been on a decline for the past four months. The score, which currently stands at 1.22 points, has failed to surpass its March levels of 2.25 points. This downward trend in the MVRV score suggests that ETH needs to reclaim its March levels in order to initiate another rally.
While the MVRV analysis provides insight into the conditions required for ETH to rally, other market fundamentals also need to be considered. Ethereum’s large holders’ inflow has increased by 57.46% over the past week, indicating strong buying activity and positive momentum.
Additionally, Ethereum’s Open Interest per exchange has risen by 8.89% to $2.4 billion, suggesting that investors are opening new positions and holding existing ones. The MVRV Z Score of 0.145 indicates a healthy market environment for ETH, with prices stabilizing after a market correction.
Moreover, Ethereum’s DyDx Exchange funding rate has remained positive, indicating high demand for long positions. Overall, the current market conditions provide a favorable environment for a potential upswing in ETH’s price. If these conditions hold, ETH is expected to reach its $2557 resistance level in the short term.
In conclusion, while Ethereum has shown signs of a potential rally, it is important to monitor market conditions closely to determine the sustainability of this uptrend. With positive indicators across various metrics, ETH remains poised for further price appreciation in the near future.