Ethereum MVRV Signal Points to Possible Recovery

The Ethereum price is currently at $1.900 and shows a slight increase of 0.2% over the past 24 hours. At the same time, a striking technical signal points to a possible trend reversal: the MVRV ratio of Ethereum is approaching a bullish crossover with its 160-day simple moving average.

Ethereum is available at OKX and Bybit.

What Is the MVRV Momentum Indicator?

The MVRV Momentum is an on-chain indicator that tracks the relationship between the average profitability of all holders and the medium-term trend of that metric. Specifically, the indicator compares the daily MVRV ratio with the 160-day SMA. Once the ratio crosses back above that average line, it is considered confirmation that the capitulation phase is over.

Analyst @alicharts explains that such a crossover indicates the market is transitioning from a distribution phase to a new accumulation regime. In other words, selling pressure gives way to increasing demand, which historically forms the basis for a solid price increase.

Historical Pattern Points to Strong Rallies

Looking at the past three years, the pattern shows a consistent picture. Every time the MVRV ratio recorded a sustained crossover above the 160-day SMA, a significant price increase for Ethereum followed. The indicator thus served as a reliable starting point for new bull market cycles.

On the Glassnode chart, it can be seen that the blue line, the daily MVRV ratio, is currently around the level of 1 and is approaching the red line, the 160-day SMA, from below. An upward breakout could, based on previous cycles, herald a strong recovery move for the Ethereum price. Whether this will also be the case now remains uncertain, of course, but the signal clearly draws the attention of analysts and investors.