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ETHEREUM price is not amid the broader encryption market in recent weeks in recent weeks from the performance recorded in the past months. During this period, the ETHEREUM price has struggled to get a large upward momentum, and remains in a long standard of unification.
Amid this, a conversation analysis By the contributor to Cryptoquant, the Mac_D shed light on the current state of Ethereum and the factors that may affect the future price path. The analysis indicates that the novel “Ultrasound Money” carried out by Ethereum-a idea linked to the symbol of contraction after the edge-has faced challenges.
The total show reached the highest level, and the savings rate decreased by 1 % since November. However, despite these obstacles on the offer side, several demands indicate that Ethereum may be developed for long -term growth.
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Less than value, pregnant behavior and institutional interest
Another major ideas is that ETHEREUM seems less than its value based on its achieved price. The achieved price reflects the average cost of acquisition of ETH possesses across all portfolios, which is currently sitting at about $ 2200.
With the current market price about 2,600 dollars, the analyst calculates the percentage of the market value to the achieved value (MVRV) slightly higher than 1, indicating that the ETH is still value to carry out historical standards. This level can be a strong support base, which limits the additional downside.
Another factor that supports the possibility of ETHEREUM is a long -term behavior. The analysis highlights an increasing number of addresses that accumulate Ethereum without sale, such as “Bitcoin Holders”.
Although some large investors have sold during the last decline period, their positions were absorbed by these long -term bearers, which helps to install the market. This trend indicates that the base of investors in Ethereum is mature, with an increased sector committed to reservation through market fluctuations.
Ethereum: a great recovery on the horizon?
Moreover, the analyst notes that selling pressure in the futures market has eased. The data shows a noticeable decrease in the market trading volume on the sale side since the ETHEREUM price near $ 4000 in November last year.
This decrease in the sales activity, even with the low prices, indicates a relative flow of purchase, which may pave the way for recovery if the market conditions improved.
Institutional participation is another encouraging factor. According to the main players, including Blackrock, Cumberland and other prominent companies, collected large quantities of ETH during the last decline.
For example, Blackrock has been said to have bought more than 100,000 ETHs, at a value of more than $ 270 million. Such important institutional flows not only enhance demand, but also give credibility to the long -term investment thesis of ETHEREUM.
Despite these positive indicators, the analysis recognizes continuous challenges. The increase in the total supply and slight decline in the percentage of savings can affect morale, especially if the conditions of the macroeconomic economy are still unconfirmed.
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Moreover, the ETHEREUM price movement may remain restricted in the short term as digesting the broader market in the market is ongoing economic transformations. However, the combination of reduced value, long -term participation in the long run, reducing sale pressure, and institutional accumulation draws a medium to long -term more optimistic.
Although Ethereum may continue to trade sideways in the short term, the factors shown in the analysis indicate that it can be in a good growth position once the wider market conditions stabilize.
A distinctive image created with Dall-E, the tradingView chart
The post Is Ethereum Undervalued? A Close Look at Realized Price and Institutional Activity first appeared on Investorempires.com.