A breach of the $4,000 mark for the Ethereum price has looked almost like a certainty over the past two weeks, with the altcoin hovering around $3,900 in the last few days. However, this almost-certain event took a different turn after the price of ETH suddenly succumbed to severe bearish pressure.
The Market Value to Realized Value (MVRV) ratio, as the name suggests, is typically used to evaluate whether a cryptocurrency (ETH, in this case) is overvalued or not. According to on-chain analytics firm CryptoQuant, an overvalued asset usually has an MVRV ratio greater than 3.7 while a ratio below 1 indicates undervaluation.
Nonetheless, Kesmeci still expects Ethereum to still break this seven-year resistance level, considering the institutional interest being enjoyed by ETH at the moment. For instance, as the on-chain analyst duly noted, the US-based spot ETH ETFs have seen a record amount of capital inflows in the past few weeks.
As of this writing, the price of ETH stands at around $3,523, reflecting a 5% decline in the past 24 hours.
