Ethereum's recent 6% drop has raised questions about the stability of the cryptocurrency market. Despite this, some experts remain confident in a bullish trend.
Overall Situation in the Ethereum Market
Ethereum has fallen by 6% to nearly $4,400, causing concern among investors. However, analyst Crypto Rand highlights that the cryptocurrency has surged by 220% over the past four months, reaching around $5,000. He states that this recent decline should not be seen as a sign of weakness, but rather a reflection of natural price movement.
On-chain Data Indicates Support for Ethereum
According to Glassnode, Ethereum's MVRV (Market Value to Realized Value) ratio has hit 2.15, indicating that holders are currently sitting on significant unrealized gains. Historical MVRV levels have occurred during positive market periods, such as March 2024 and December 2020, suggesting a healthy market structure.
Prospects for Altcoins
The altcoin market is currently consolidating just below the $1.05 trillion resistance level. Analysts believe that a new institutional driver will be needed for a significant altcoin movement, potentially through new ETFs involving assets like Solana or XRP.
Despite the 6% drop, experts agree that the Ethereum market remains robust, and the future may hold optimism, especially considering positive indicators and current market conditions.
