Watch Ethereum's MVRV

28 oct.

The MVRV is a metric that compares the current market value of an asset to its realized value, offering insight into potential overvaluation or undervaluation.

This is a great indicator because it helps identify points of extreme market sentiment—whether assets are trading above or below what most investors paid for them. When MVRV is high, assets are generally overvalued, signaling potential profit-taking phases, while lower MVRV values often indicate undervaluation and possible buying opportunities.

Currently, ETH MVRV hovers around 1.2, suggesting that Ethereum’s market value is slightly above its realized value. Historically, ETH has bottomed out when MVRV dips below 1, as it indicates capitulation among investors and a favorable accumulation phase. If ETH's price trends lower, it could suggest an upcoming period of opportunity for value-focused investors.


On the flip side, MVRV readings above 2—particularly in the 2-3 range—indicate an overheated ETH price. At this level, ETH tends to be overextended, marking a range to watch for potential rallies nearing their peak. Keeping this threshold in mind can help spot when a cooling phase might be on the horizon.