Crypto Analytics Firm Santiment Said Ethereum Is Close To A Great Opportunity | CryptoGazette
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It’s been revealed that the crypto analytics firm Santiment is really bullish about Ethereum. Check out the latest reports coming from them below.
The firm just revealed the bullish prospects that it has for Ethereum. In a new blog post, Santiment said that the Market Value to Realized Value (MVRV) metric of Ethereum (ETH) over the past seven days (7D) shows that ETH is near the “opportunity zone.” Just in case you don’t know, this is where typically the price bottoms out.
The MVRV is used to show the average profit or loss of all coins in circulation at the prevailing price, according to the online publication the Daily Hodl. This is calculated as market capitalization over the acquisition costs of the assets in a wallet.
“ETH’s MVRV 7D which measures the short-term profit/loss of holders is showing that we are almost into the opportunity zone, which historically saw a local bottom being developed.”
Supply of ETH on exchanges is going down
It’s been also revealed by the online publication the Daily Hodl notes that the crypto market intelligence platform also says that the supply of Ethereum on exchanges is on a downward trend.
“ETH’s supply on exchanges continues to fall since mid-March, regardless of the rally. This may indicate that certain market participants with sizable amounts of ETH are not looking to sell anytime soon.”
Santiment also had more to say about Ethereum.
“Previous major tops have seen average gas fees skyrocket as the crowd piled in, which actually makes this metric a decent proxy to spot whether we are close to the top.”
The firm also made sure to highlight the fact that we are nowhere near the sort of spike we saw back in May 2021 and Nov 2021.
At the moment of writing this article, ETH is trading in the green and the digital asset is priced at $3,242.
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