- Interest in ETH did not drop because the price of Bitcoin reached ATH.
- The 30-day MVRV ratio and other indicators suggested that the cryptocurrency was undervalued.
March 5 was a historic day for the crypto market like Bitcoin [BTC] reached a new all-time record. Despite the attention Bitcoin received, Ethereum [ETH] was not offside. According to facts AMBCrypto got from Kaiko, the total spot volume for ETH on the said date was over $20 billion.
The increase in volume of Centralized Exchanges (CEXs) ensured that interest in the altcoin remained visible. For example, Etheruem trading volume on Binance climbed above $10 billion. Bybit had $3.2 billion, while Coinbase and OKX registered $1.62 billion and $2.13 billion in volume, respectively.
However, it is important to note that Bitcoin’s total spot volume exceeded ETH on the same day. Based on Kaiko’s data, Bitcoin’s CEX spot volume was $46.25 billion.
ETH shows that it is certainly not small
Findings from our side showed that Ethereum was able to maintain this level of interest due to its price. Before Bitcoin’s ATH, ETH’s price action was moving at a fast pace. This climb indicated that market participants were as bullish on the altcoin as they were on BTC.
At the time of writing, ETH was changing hands for $3,842. This value represented an increase of 15.24% over the past seven days. According to the daily ETH/USD chart, there was a bullish engulfing candle after the cryptocurrency previously fell to $3546. This rapid upward return was evidence that interest in ETH was more aligned with accumulation than selling.
The Accumulation/Distribution (A/D) indicator also supported this statement as its value increased. Furthermore, AMBCrypto analyzed the Exponential Moving Average (EMA). At the time of writing, the 20 EMA (blue) had crossed the 50 EMA (yellow). This crossover suggested a bullish trend.
Source: TradingView
ATH also for ETH?
If the EMA maintains this position, the price of ETH could rise above $4,000. Furthermore, the Supertrend showed a buy signal above $3,000, indicating that no amount of bearish pressure could force the price below the region.
A similar situation also existed with the Aroon indicator, which showed a bullish bias. Going forward, ETH could rise to $4,500 in the short term. However, there could be hurdles ahead as the price may pull back at some point.
In terms of the active addresses, data on the chain showed that the number rose to 565,000 on March 5. Although the number had declined at the time of writing, the initial surge increased speculation regarding ETH.
Furthermore, the 30-day market value to realized value (MVRV) ratio was 25.10%. This ratio means that each ETH holder would make a 25% profit if they sold at the press time price. The MVRV ratio can also reveal whether a cryptocurrency has a real value or not.
Source: Santiment
Read Ethereum’s [ETH] Price forecast 2024-2025
Since the ratio was well below 100%, this meant that ETH’s upside potential remained enormous. At the peak of the bull market, the altcoin could reach 2x its current value.
But when that would happen remains a mystery.