Apr 8, 2025
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Ethereum MVRV Ratio Declines to 0.87, Signaling Potential Losses
Recent on-chain data indicates a decline in the Ethereum Market Value to Realized Value (MVRV) Ratio, currently at 0.87. This metric analyzes the relationship between Ethereum's market cap and realized cap, reflecting whether investors are holding coins at a profit or loss.
Key Points
- The MVRV Ratio falling below 1 suggests most investors are at a net loss.
- The current ratio is the lowest since December 2022, coinciding with the end of that bear market.
- A decrease in the MVRV Ratio could indicate reduced selling pressure as fewer holders are in profit.
- This situation may signal a potential price bottom for ETH, although timing for recovery remains uncertain.
- ETH has recently dropped approximately 12%, now priced around $1,550.
