Ethereum trades just 2% under its record high price of $4,878, yet Santiment’s analysis indicates that the on-chain metrics flash warning signals regarding potential price changes.
You can read more about it here:
- Santiment alerts on high MVRV by warning that Ethereum is trading 2.2% under the ATH.
- The 30-day MVRV is at 15 % and the long term at 58.5%, which both signal a profit-taking potential.
- Falling exchange supplies and increasing network activity are two signs of optimism
Over the past thirty days, the second largest cryptocurrency gained 32 percent and has risen over 5 percent in the recent week. Ethereum (ETHThe price of ) has reached $4834 in recent trading sessions.
Santiment, a blockchain analytics company, warns that the valuation metrics could lead to profit-taking.
Ethereum Price Hits New All-Time High
Ethereum has increased by over 40% since 2025. This is a better performance than Bitcoin. After reclaiming $4000 in August early, it passed the $4500 mark a couple of days later.
The rally is driven by strong inflows into spot Ethereum ETFs—approved by the U.S. Securities and Exchange Commission (SEC) in July 2024 and now holding over $20 billion, led by BlackRock’s ETHA—as well as the rise of digital asset treasuries (DATs) centered on ether.
Ethereum ETFs saw new inflows as well, with $287 million added on Thursday, and then more on Friday. This brings the total ETF asset to $30.54 Billion. The Ethereum ecosystem is also showing strong activity. Stablecoins are up by 10%, to $147 Billion, and the total number of transactions has risen to $880 Billion, increasing project revenue.
Ethereum’s value is rising as well due to the growing expectation that interest rates will be cut by the Federal Reserve in September. This follows weaker than expected July job data, and an increase in unemployment.
The Fed’s dovishness would probably shift investments from low-risk securities to higher risk assets, like crypto.
Ethereum hits ‘danger zone’— On-chain signals keep bulls hopping
Santiment’s analysis shows that the Market Value to Actual Value (MVRV), ratio of Ethereum, is a concern. The MVRV for the 30-day period is close to 15%. According to Santiment, this level represents a “danger signal”. “danger zone” Where altcoins often face pullbacks.
MVRV long-term is currently at 58.5%. This high reading indicates that existing holders have unrealized profit. It is more likely that ETH will be sold if it breaks resistance levels.
MVRV measures the difference between market value and realized capital. These extreme ratios can often be a sign of upcoming price corrections, as investors are taking profits.
Ethereum has been known to experience price drops ranging from 10% up to 25% when the 15% threshold is reached.
Bullish signals on the chain counter-value warning
On-chain metrics that are more positive for Ethereum on the long term can be seen in other measures. The average dollar investment age has been dropping rapidly. The coins that were previously inactive are now being circulated.
This is a sign of increased activity in the trading network. The total amount of profit made by the coins that have been moved along-chain is measured. This gives an indication of market sentiment.
This is the most bullish news. The trend indicates that investors are more likely to prefer self-storage over trading platforms.
Since months the Exchange Supply metric has declined as investors move their funds to cold storage wallets. The price of a stock can often increase when this behavior occurs, as the amount available for trading is reduced.
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Source: crypto.news
