Ethereum News Today: Ethereum Dips Below $3,500 but MVRV Ratio Hints at Strong Uptrend

Ethereum's price recently corrected to below $3,500 after briefly hovering near $3,900, triggering short-term concerns about the sustainability of its recent bullish momentum. However, on-chain data, particularly the Market Value to Realized Value (MVRV) ratio, suggests the uptrend may still hold strong. The MVRV ratio, which compares Ethereum's total market value to the sum of realized values of all individual coins, has historically been used to gauge whether the asset is overvalued or undervalued. An MVRV ratio above 3.7 typically indicates overvaluation, while a value below 1 suggests undervaluation [1].

According to on-chain analyst Burak Kesmeci, the recent rejection of Ethereum’s MVRV ratio at a long-term resistance level points to increased profit-taking in recent days. Despite this, Kesmeci argues that the ratio is still near a potential breakout point and could soon reverse its seven-year downtrend. He notes that as long as the MVRV ratio remains above the 365-day simple moving average, the upward trajectory for Ethereum remains intact [1]. This would suggest that the majority of ETH holders are currently in profit, reinforcing a bullish outlook.

The recent pullback to $3,500 does not necessarily signal a reversal, particularly given the continued influx of capital into Ethereum-based products. For instance, US-based spot ETH ETFs have seen a surge in inflows over the past few weeks, highlighting the growing institutional interest in the asset. This trend, combined with the current MVRV reading, supports the view that Ethereum is not finished climbing.

While the price remains under $4,000 for now, the broader on-chain landscape continues to favor a continuation of the uptrend. Market participants are advised to monitor the MVRV ratio closely, as it provides a clearer picture of the asset’s internal health beyond short-term price fluctuations. As the market matures, the use of such metrics becomes increasingly vital for distinguishing between temporary volatility and a shift in long-term direction.

Source:

[1] Mitrade - Ethereum Price Pulls Back To $3500, But MVRV Signals ... (https://www.mitrade.com/insights/news/live-news/article-3-1007684-20250803)

[2] Cipherbuzz - Sitemap - Crypto News (https://cipherbuzz.com/sitemap/)