According to BlockBeats, as of October 28, Ethereum's Market Value to Realized Value (MVRV) ratio stands at approximately 1.2, suggesting that its market value is slightly higher than its realized value. Historically, when ETH's MVRV falls below 1, it often signals panic selling among investors and represents a favorable accumulation phase. Should ETH prices decline further, it may present a forthcoming buying opportunity for value investors.
Conversely, an MVRV reading above 2, particularly within the 2-3 range, indicates that ETH prices are overheated. At this level, ETH is typically overextended, suggesting that the upward trend may be nearing its peak.
BlockBeats notes that MVRV is a metric used to compare an asset's current market value with its realized value, providing insights into whether the asset is overvalued or undervalued. This indicator helps identify points of extreme market sentiment—whether the asset's trading price is above or below the majority of investors' purchase costs. A high MVRV value generally indicates that the asset is overvalued and may enter a profit-taking phase, while a low MVRV value typically suggests undervaluation and a potential buying opportunity.
