Ethereum (ETH) Bottoms Out, Gearing Up for a New All-Time High (ATH)

The worst appears to be over for Ethereum (ETH) as various metrics suggest that the bottom is already in for the second-largest cryptocurrency by market cap.

Various metrics indicate that the bottom may already be in for Ethereum (ETH), suggesting a potential move toward a new all-time high (ATH).

According to data from the onchain analytics platform Glassnode, the lowest pricing level for Ethereum’s market value to realized value (MVRV) is at $1,687. This measure estimates the low or high points a token may reach in a market cycle based on unrealized losses or profits.

notably, Ethereum dropped to as low as $2,200 following the market crash on August 5. This price level closely aligns with the $2,109 MVRV pricing band highlighted by Glassnode.

In parallel, there’s a drastic decline in the percentage of ETH’s supply held on exchanges to below 10%, as noted by Glassnode. This decline is significant as it potentially reduces the selling pressure on Ethereum, paving the way for a massive rally, provided investors continue to hold their assets.

Moreover, Glassnode's data suggests that Ethereum could rise above $5,000, reaching as high as $6,759, which is currently the highest MVRV pricing level for the crypto. This price level could signify the market top for Ethereum in this bull run.

Two metrics highlighted in a recent blog post on the onchain analytics platform Cryptoquant indicate that Ethereum is gearing up for its next leg up.

One of these metrics is the Taker Buy-Sell Ratio, which calculates the ratio of Ethereum buyers to sellers. This metric has turned positive again, demonstrating that Ethereum bulls are regaining strength and are mitigating selling pressure from the bears.

Another significant metric is Ethereum’s open interest (OI), which is on the rise again after dropping to $7 billion following the August 5 market crash. Data from Coinglass shows that the OI currently stands at 10.81 billion, indicating that leveraged players are returning to the market. This is noteworthy as trading volume in the derivatives market significantly impacts ETH’s price.

At the time of writing, Ethereum is trading at around $2,590, down over 3% in the last 24 hours, as indicated by data from CoinMarketCap. The price still remains above $2,500, reflecting a resilient hold amid market fluctuations.