Ethereum
Ethereum Approaches $3,000 Following Profitable MVRV Ratio Signal! Here is the next ETH price level
Over the past few hours, the cryptocurrency market has seen a rebound after several days of trading in a tight range. Bitcoin price surpassed $63,000, pushing Ethereum close to the $3,000 mark. Despite this, Bitcoin’s growing dominance suggests a potential bearish pullback for altcoins. However, the current decline could be profitable for buyers as Ethereum’s MVRV ratio hits a weekly low, indicating a possible build-up to a significant uptrend.
Ethereum Open Interest Rises
Over the past few hours, the cryptocurrency market has exploded, with the price of Bitcoin surpassing $63,000. This momentum also pushed the price of Ethereum to nearly $3,000. Data from Coinglass reveals that the market saw approximately $6.6 million in liquidations, with Ethereum accounting for nearly $1.8 million in short liquidations.
Recent on-chain data shows an improvement in investor sentiment, which is likely behind the current ETH price rally. According to IntoTheBlock, the open interest ratio, which compares total open interest on futures contracts to spot market capitalization, has increased, suggesting bullish sentiment.
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The open interest ratio is now at 4.21%, up from a low of 3.3%. Historically, ETH prices tend to struggle to stay above $3,000 when the open interest ratio drops below 3.5%. The last time it fell to this level was April 14. However, the current increase in the ratio could indicate strong commercial interest.
Additionally, Ethereum’s MVRV ratio is declining, now falling from a high of 1.74 to 1.55, suggesting that realized value is approaching market value. This could provide a good buying opportunity as market sentiment calms. Market cap is the total dollar value of coins in circulation, using the average price on major exchanges. Realized value, considered more accurate, estimates the total amount paid for all existing coins based on on-chain transactions.
What’s next for the ETH price?
The price of ETH attempted to break above the resistance at $3,000, but the bears are firmly defending this level. After falling below $2,900 due to increased selling pressure, buyers managed to hold the price. Currently, ETH is trading at $2,956, up more than 1% in the last 24 hours.
A positive sign for the bulls is their success in keeping the price around $3,000, which could increase the chances of a breakout. If the ETH/USDT pair breaks this level, it could test the next resistance at $3,200.
On the other hand, the main support levels are at the Fib levels. A breakout and close below $2,800 could indicate a consolidation phase between $2,800 and $2,500 for a few days.
The moving averages are trending lower, but the RSI has surged above the midline, suggesting that the bulls have an advantage. Buyers will aim to push the price above $3,200 to strengthen their position. A successful move above this level could push the price towards $3,586.