ETH gets down 33% from its all-time high as the traders are continuously buying the dip as we can see more today in the latest ethereum news.
The market value of ETH took a huge hit and the analysis shows there are some bullish indicators showing up as the traders are buying the dip. ETH gets down 33% from its all-time high that was set in November 2021. Ether’s market value took a huge hit in the past 24hours and dropped by 10%. At the time of writing, it looks like ETH bottomed out above $3100 on Friday morning and the question that traders asked is whether this is the bottom for the coin.
Looking at the analysts, the ETH MVRV is looking at reaching a painful level that the traders felt since July last year from which time, the price jumped 188%. MVRV is the market-value-to-realized-value ratio of the asset’s market cap versus the realized capitalization. By comparing these metrics, MVRV can be used to get a sense of when the price is above or below fair value and to learn more about the market profitability. The extreme deviations between market value and the realized value can identify the market tops and bottoms as they reflect on periods of extreme investor unrealized losses and profits.
Another indicator is the ETH active addresses number against the ETH asset price which looks positive. The active addresses were on the increase as the asset price moves down which shows that the market participants are active on the downturn market may be buying the dip and stabilizing the market. The first week of 2022 doesn’t look too good for ETH as the entire market is going south despite performing well in 2021. last year, the market value of Ether increased by over 450% and reached an all-time high of $4878 in November while the year-to-date metric is up by almost 170 percent.
2022 is the year of the Merge for Ethereum with the blockchain changing the consensus algorithm from the Proof of Work to Proof of Stake but so far things are going out well and we could soon see a make or break moment for the Ethereum ecosystem.
As recently reported, Ethereum loses its dominance in Defi and it could start reclaiming some ground following the ETH 2.0 update. Analysts at the investment bank including Managing Director Nikolaos Panigirtzouglu noted that Ethereum is losing its dominance in the Decentralized Finance ecosystem.