Ethereum Has One Obstacle to Fresh Highs, According to On-Chain Data
According to IntoTheBlock, Ethereum has one obstacle to fresh all-time highs as it faces a substantial barrier zone between $3,300 and $3,900. According to CoinMarketCap data, Ethereum is currently trading at $3120, up 2.19% in the previous 24 hours.
More than 5.44 million addresses have acquired nearly 21 million ETH between $3,300 and $3,900, which stands in the way of new all-time highs, according to IntoTheBlock data. A decisive candlestick just over this resistance level might catapult ETH to new record highs. Alternatively, immediate support sits at $2,807 where 7.42 million Ethereum addresses have bought nearly $24 million ETH.
Ethereum also appears to have entered an accumulation phase as buy-in signals gradually return. The Market Value to Realized Value (MVRV) indicator indicates that Ethereum is currently undervalued. This fundamental index calculates the average profit or loss of addresses that bought Ethereum in the previous month.
The 30-day MVRV suggests that #Ethereum is undervalued.
This on-chain metric currently hovers at -11.12%, indicating that $ETH sits in the “opportunity zone.” The lower the MVRV ratio becomes, the higher the probability of an upward price movement for #ETH. pic.twitter.com/XaQPHOzQt1
— Ali Martinez (@ali_charts) January 19, 2022
The 30-day MVRV ratio is at -11.12%, indicating that Ethereum is trading in the “opportunity zone.” The lower the MVRV ratio, the more likely it is that prices will rise.
Demand on the Ethereum network soared in 2021, with $9.9 billion in transaction fees paid during the year. Ethereum showed adoption in almost every metric: total value locked in DeFi, active addresses on the network, OpenSea volume and application developer activity all increased exponentially.
Despite this, Ethereum is losing NFT market share to Solana, as U.Today reported, according to a JPMorgan analyst study. According to the report, Ethereum’s share of the NFT market is anticipated to be more important than its share in decentralized finance (DeFi) because NFTs are the “fastest-growing universe in the crypto ecosystem.”
”If the loss of its NFT share starts looking more sustained in 2022, that would become a bigger problem for Ethereum’s valuation,” Ethereum says.