The highly anticipated Shanghai upgrade on Ethereum took place successfully on April 12. After this upgrade, there was a general expectation that there might be selling pressure on ETH and the price would be negatively affected.
However, the fears did not happen and ETH exceeded $ 2,000 for the first time since August 2022. ETH, which continues its upward momentum, has increased by 9.71% in the last 24 hours and continues to be traded at $ 2,100.
With ETH hitting an 8-month high, investors are now wondering if this surge is just a temporary wave or the start of a longer rally.
As investors' confusion continues, popular on-chain data provider Santiment evaluated possible bear/bullish scenarios in ETH.
Examining the MVRV rate in this context, Santiment stated that a MVRV rate of 15% or more is a warning indicating the possibility of a correction.
Stating that this rate is 9.95% in ETH, Santiment stated that the current rate is not worrying in terms of correction for ETH.
“A 30-day MVRV of 15% or more is seen as a danger zone, indicating a possible correction mark.
However, as of now, the ETH MVRV rate is 9.95%. There doesn't seem to be any concern for ETH for now."
Looking at the profit-loss transaction ratio in Ethereum, Santiment pointed out that the number of transactions in profit is 2.5 times more than the number of transactions in loss, and stated that this may be a short-term decline signal.
“There are 2.59 times more trades that are in profit compared to trades that are out of stock today.
This rate is the highest since January 20, when we saw a minor correction.
We interpret this rate as a short-term bearish signal. Because this high rate can pull prices down historically temporarily."
Finally, Santiment said that there are other indicators that point to a decrease and an increase in ETH, stating that the years and bulls will continue to fight in 2023, "while the bulls and bears fight, some uncertainty may be seen above or slightly below $ 2,000 for a while." said.
*Not investment advice.