Cryptocurrency analysis firm Alphractal has focused its attention on the MVRV Z-Score, one of Ethereum's (ETH) on-chain indicators. According to the company's assessment, on August 13th, the MVRV Z-Score returned to its March 2024 levels. Ethereum hadn't performed strongly during that period.
The MVRV Z-Score measures the difference between market value and realized value, adjusting for historical volatility. This metric is used to identify both periods of market enthusiasm and attractive accumulation opportunities for long-term investors.
According to data shared by Alphractal, the metric is currently trading below the on-chain “indecision zone.” Historically, this zone has acted as both a resistance and pullback area depending on whether the market is bullish or bearish.
For a more optimistic outlook, the indicator needs to surpass its August peak of 1.33. However, the MVRV Z-Score, currently at 0.9, suggests that Ethereum may face sideways consolidation and selling pressure in the short term.
*This is not investment advice.
