• Ethereum’s MVRV ratio now sits above 100%.
• This marks its highest level since April 2022.

Ethereum’s [ETH] Market Value to Realized Value (MVRV) ratio has climbed to its highest point since April 2022, data from Santiment revealed. 

The MVRV ratio assesses whether an asset is overvalued or undervalued. It does this by comparing the current market value of an asset to the average price at which all units were last moved on the blockchain. 

When it increases, it suggests that the current market value of an asset is significantly higher than the price at which most investors acquired their holdings.

At press time, ETH’s MVRV ratio was 103.11%, having risen by 145% since 25th January, per Santiment’s data. This rally coincides with the recent surge in ETH’s price, which recently surpassed the $3,400 mark, according to data from CoinMarketCap. 

With an MVRV ratio of 103%, ETH’s current market price is 1.03 times higher than the average price at which all ETH units were last moved on the blockchain. Therefore, on average, most coin holders would realize at least 100% profit on their investments if they sold now. 

No cause for alarm

While readings from ETH’s Bollinger Bands indicator observed on a single-day chart revealed that ETH’s price remained prone to swings, other key indicators showed that bullish sentiments exceeded bearish activity.

For example, the coin’s Awesome Oscillator returned green upward-facing bars at press time. This indicator measures market momentum by comparing its short-term and long-term moving averages. 

When it returns only green bars, it indicates that the short-term moving average is rising faster than the long-term moving average. This suggests that the bullish sentiment is strong and gaining momentum.

Further, the coin’s Moving Average Convergence/Divergence (MACD) line (blue) rested solidly above the trend (orange) and the zero lines as of this writing. 

When readings from this indicator show the MACD and trend lines above zero (as is the case here), it suggests that bullish momentum is prevailing in the market.

Realistic or not, here’s ETH’s market cap in BTC’s terms

On the coin’s derivatives market, futures open interest totaled $11.38 billion as of this writing. The last time ETH’s futures open interest was that high was in December 2021, per data from Coinglass. 

With the growth in the coin’s positive funding rates across exchanges, futures traders continue to place bets in favor of a price rally.