- Interest in ETH did not drop because Bitcoin’s price hit ATH.
- The 30-day MVRV ratio and other indicators suggested that the cryptocurrency was undervalued.
The 5th of March was a historic day for the crypto market as Bitcoin [BTC] hit a new all-time high. Despite the attention Bitcoin got, Ethereum [ETH] was not sidelined. According to data AMBCrypto got from Kaiko, the total spot volume for ETH on the said date exceeded $20 billion.
The hike in the volume of Centralized Exchanges (CEXes) meant that interest in the altcoin remained visible. For instance, Etheruem’s trading volume on Binance climbed above $10 billion. Bybit had $3.2 billion while Coinbase and OKX registered $1.62 billion and $2.13 billion in volume respectively.
However, it is important to mention that Bitcoin’s total spot volume was more than ETH on the same day. Based on Kaiko’s data, Bitcoin’s CEX spot volume reached $46.25 billion.
ETH shows it’s in no way small
Findings from our end showed that Ethereum was able to sustain that level of interest because of its price. Before Bitcoin’s ATH, ETH’s price action moved at a high pace. This climb indicated that market participants were optimistic about the altcoin the same way they were about BTC.
At press time, ETH changed hands at $3,842. This value represented a 15.24% increase in the last seven days. According to the ETH/USD daily chart, a bullish engulfing candle after the cryptocurrency slipped to $3546 earlier. This quick upside return was proof that interest in ETH aligned more with accumulation than selling.
The Accumulation/Distribution (A/D) indicator also supported this thesis as the reading climbed. Furthermore, AMBCrypto analyzed the Exponential Moving Average (EMA). At press time, the 20 EMA (blue) had crossed over the 50 EMA (yellow). This crossover suggested a bullish trend.
Source: TradingView
ATH for ETH too?
Should the EMA maintain this position, ETH’s price could rise above $4,000. Furthermore, the Supertrend displayed a buy signal above $3,000, indicating that no kind of bearish pressure could force the price below the region.
It was also a similar situation with the Aroon indicator which revealed a bullish bias. Going forward, ETH could climb toward $4,500 in the short term. However, there could be hurdles on the way as the price might pull back at some point.
In terms of the active addresses, on-chain data showed that the number jumped to 565,000 on the 5th of March. Though the number had decreased at press time, the initial hike meant that speculation involving ETH increased.
In addition, the 30-day Market Value to Realized Value (MVRV) ratio was 25.10%. This ratio implies that every ETH holder would make a 25% profit if they sold at the press time price. The MVRV ratio can also tell if a cryptocurrency is at a fair value or otherwise.
Source: Santiment
Read Ethereum’s [ETH] Price Prediction 2024-2025
Thus, since the ratio was far below 100%, it meant that ETH’s upside potential remained a massive one. At the height of the bull market, the altcoin could hit 2x its current value.
But when that would happen remains a mystery.