Ethereum is attracting attention again with two strengthening signals in on-chain data and technical outlook. The MVRV indicator, known as the market value to realized value ratio, is close to breaking above the 160-day simple moving average. Analysts believe that confirmation of this intersection could support investor confidence and pave the way for a broader market recovery.
MVRV indicator approached the critical threshold
Ethereum price traded at $1,899.56 at the time of the news. The asset’s 24-hour trading volume was recorded as 10.18 billion dollars and its market value was 228.95 billion dollars. Despite the price falling 1.69 percent in the last 24 hours, the current structure has not completely eliminated the possibility of an upward turn, according to some analysts.
Ali Charts said that the MVRV rate for Ethereum is approaching to break above the 160-day simple moving average. This type of crossover is seen as a positive technical development, indicating an improvement in market sentiment. According to analysts, the weakening of selling pressure and the gradual return of long-term investors may strengthen the accumulation tendency.
Ali Charts states that if the MVRV rate in Ethereum moves above the 160-day average, it may indicate a recovery in market sentiment and a decrease in selling pressure.
Mini dictionary: MVRV is the indicator that compares the market value of an asset with the realized cost to investors on-chain. This ratio is used to understand whether the price is relatively expensive or discounted relative to the historical cost base.
The MVRV Momentum indicator compares the total paper gains of all investors with the medium-term trend. In the past, when this indicator rose above the 160-day trend, it indicated that the distribution process was over and the possibility of a subsequent recovery in the Ethereum price increased. Therefore, all eyes in the market turned to clear confirmation of the signal.
Ascending channel highlights the $5,000 level
Kamran Asghar also points out that Ethereum is moving within a rising channel again on the long-term chart. According to the analyst, this structure is similar to the bottom zones formed after sharp corrections in previous cycles. In past examples, strong increases were seen following such formations.
If this historical similarity is maintained, the Ethereum price may move towards the upper band of the ascending channel. This limit coincides with the $ 5,000 level, which is frequently watched in the market. However, for this scenario to gain strength, both the MVRV intersection and price momentum need to be confirmed together.
Kamran Asghar emphasizes that Ethereum is following a rising channel again in the long term and that this structure is similar to the strong recoveries seen after significant bottoms in the past.
The search for direction in the market continues
Despite positive technical signs, Ethereum price is still under pressure in the short term. The general market trend and movements in Bitcoin in particular continue to be decisive on altcoins. Therefore, Ethereum’s next direction will depend not only on its own indicators but also on broader market conditions.
In the coming period, investors will closely monitor technical levels that stand out with market sentiment. If Ethereum confirms the positive signal on the MVRV side and maintains its movement within the ascending channel, the expectation of a stronger recovery may find support.
