In a recent update from Santiment, it has been revealed that the 10 largest addresses within the Ethereum network have now acquired a staggering 35% of the total available supply. While this development has raised concerns among some about the potential centralization of the second-largest cryptocurrency in the market, experts are quick to point out that this doesn’t necessarily indicate a sudden shift toward centralization.
Rather, it is being seen as a reflection of the current market sentiment influenced by smaller traders who have succumbed to fear, uncertainty, and doubt (FUD) due to the ongoing dip in prices.
In the midst of these observations, Analyst Ali took to Twitter to share a noteworthy insight about Ethereum’s Market-Value-to-Realized-Value (MVRV) Ratio in comparison to the 180-day Simple Moving Average (SMA).
This analytical approach provides valuable insights into the broader market trends surrounding Ethereum. When the MVRV Ratio surpasses the 180-day SMA, it tends to signify macro uptrends in the market. Conversely, when the MVRV Ratio falls below this SMA, it suggests potential downtrends.
Of particular significance, especially in light of the recent downward trajectory of Ethereum’s price, is the fact that the MVRV Ratio has now slipped beneath the 180-day SMA. This shift in the MVRV Ratio dynamics is interpreted as a caution signal for Ethereum bulls – investors with a positive outlook on the asset’s future value.
This cautionary indication serves as a reminder that despite the cryptocurrency’s historical resilience and growth, the current market conditions warrant a more prudent approach to trading and investment strategies.
Ethereum Price Update: Projected Decrease Amidst Bearish Trends
The current price of Ethereum stands at $1,651.39, accompanied by a 24-hour trading volume of $4 billion. Over the past 24 hours, ETH has shown a minor increase of 0.04%, although its performance over the past week has seen a modest decline.
As indicated by analyses from the Pricepredictions website, Ethereum’s long-term trajectory appears bearish, leading to a projected price drop of $37.78 within the upcoming 7 days. It would place the value at $1,616.26 by September 2, 2023. In the short term, a slight decrease in value over the next few hours is expected.
Related Reading | HashKey Exchange Gears Up To Launch Retail Crypto Trading On August 28th