Ethereum MVRV Ratio Death Cross Appears, Last Preceded 60% Price Drop

The Ethereum MVRV Ratio has formed a "death cross," potentially signaling a price decline. The MVRV Ratio, which compares Ethereum's Market Cap to Realized Cap, indicated that a previous crossover led to a significant price drop from $3,300 to $1,400.

The MVRV Ratio assesses the profit-loss situation of Ethereum holders by comparing current market value with realized value.
A value greater than 1 indicates holders have more value than invested; below 1 suggests the market is underwater.
Recently, the MVRV Ratio fell below its 160-day moving average, reminiscent of a prior event that resulted in a nearly 60% price decrease.
Not all past crossovers led to declines; some were short-lived and quickly reversed.

Ethereum's current price is around $4,000, reflecting a 2% decrease over the past week.