According to foreign media, a chain indicator often used to observe valuation locations fell back into the lower range and the market began to look at whether ETH was near the stage bottom. According to the report, the MVRV ratio of ETH has fallen by 0.8, citing the analyst Ali, and this area has appeared on several occasions before the apparent rise.

MVRV falls into historical lows.

The MVRV is used to compare the market value and the realized value of the Taifeng. According to the report, when the ratio falls by 0.8, it usually means that the overall market value is significantly lower than the cost of holding the currency, and sales pressure may be close to decline.

According to Ali, a similar situation has occurred in the past three times, in December 2018, March 2020 and June 2022. This was followed by a more visible rebound at all these points, so that once the signal re-emerged, the market saw it as a bottom reference worth tracking.

  • Current focus: ETH MVRV fell 0.8
  • Historical control points: 2018, 2020, 2022
  • Market interpretation: sales pressure or near release

ETH short-lined up to $1,800.

As at the time of the release of the report, ETH 24 hours had risen by 1.18 per cent, reporting $1,802, or 1.78 per cent in the past week. Reports suggest that the recent performance of ETH is slightly stronger than that of bitcoin and that the short-line movement is trying to move away from a structure that has been consistently low.

In terms of prices, ETH has re-established its 50-day average of $1,767, the first since mid-May. It was previously visited by ETH on 8 July at US$1,710 and subsequently repaired; it rose to US$1,831 at the beginning of July, but was blocked at that location.

Short-line repair space may continue to be opened if the follow-on station stabilizes the 50-day mean line. The report mentions that the market is also observing the opportunity for ETH to retest the $2,000 level and to further approach the $2,214 area where the 200-day average is located.

Derivatives speculating to cool down

Reports also mentioned recent signs of stability in the market for encrypted derivatives. Short-line speculative heat retreats and the holding structure is more in favour of medium- and long-term configurations, which is seen as a complementary signal of market volatility.

A new report from the University of Cambridge Alternative Finance Centre states that after the completion of The Merge, the annual electricity consumption has fallen to about 7.87 GWh, a decrease of more than 99.9 per cent compared with the pre-merger period. This data does not directly correspond to price trends, but reflects a significant decrease in operating costs for the SEA network.