MVRV Z-Score Points At $ETH Oversold Mar 2022 | Bear Flip Possible For Prices To Rebound

2 min read

Are crypto bears now having the upper hand over bulls? On-chain metrics point to mounting selling pressure for Ethereum (ETH). And, its price might see even more downside these coming days.

ETH’s netflows on exchanges show that market participants are moving $ETH onto exchanges, suggesting sell-side demand may be outpacing buy-side demand. Should this trend continue, ETH’s price may drop as immediately marketable supply increases.

eth mar 2022

Source: CoinPedia

Today’s cryptocurrency values were uneven, with Bitcoin remaining below the $39,000 mark. It remained practically unchanged at $38,279, down 0.2 percent.


Ethereum has also dropped over 4% to $2,520. Dogecoin, on the other hand, has dropped 2% to $0.11, while Shiba Inu has been down more than 2% to $0.000023.

At the time of writing, ETH is trading at $2535 down by 1.6% in the last 24 hours. The token is recovering the recent losses. The support is at $2450 and the resistance is at $2640.

Ethereum (ETH) investors should be aware that various on-chain data point to significant downside pressure on the second-largest digital currency by market capitalization.

A rise in ETH streaming into exchanges, according to Kraken, could indicate that bears now have the upper hand over bulls.

According to Kraken, the netflows of ETH on exchanges show that market participants are moving the cryptocurrency onto exchanges, implying that sell-side demand is outpacing buy-side demand. If this pattern continues, the price of ETH may fall as the amount of instantly marketable supply rises.

On-Chain Analysis Hints At Comeback

Despite evidence of increased sell-side pressure for Ethereum, Kraken observes that one on-chain statistic implies the cryptocurrency is poised for a comeback.

The market value to actual value Z-score (MVRV Z-score), which compares an asset’s market value to its realised value and is used to detect overbought or oversold conditions, is now hovering in the bullish zone, according to recent research by Kraken.

MVRV Z-score is an on-chain metric that identifies whether ETH price is overvalued or undervalued by comparing it to its fair value.

Simply put, the MVRV Z-score helps us get a better sense of when ETH might be “overbought” or “oversold.” A reading above 5 has historically indicated that ETH is “overbought,” while readings below 1 have suggested that ETH is “oversold.” With ETH down almost -37.5% from all-time highs, the crypto asset’s MVRV Z-Score reading of 1 indicates that ETH is in “oversold” territory and is back on the rise. ETH’s MVRV Z-score confirms that ETH has entered a correction and could flip trends back to the upside soon as ETH infrequently falls this deep into oversold territory before prices rebound.

– Source: Kraken

According to Kraken, the impact of current uncertain macroeconomic conditions has already been priced into the crypto markets, with healthier price action beginning to form again. However, the exchange claims that the crypto markets still have a minor bearish bias, with Ethereum being more vulnerable than Bitcoin at the moment.

Over the last 30 days, the overall exchange net position change for BTC has been +$13.5 million. The exchange net position change for ETH is similar to BTC’s, albeit bearish momentum appears to be larger.

Over the last 30 days, the exchange net position change for ETH has been +$874.5M. Still, bearish momentum in BTC is diminishing, whilst in ETH, the opposite is true.

Risk Dominates The Market

In addition, Kraken states that the uncertain macroeconomic conditions that also dominate traditional markets are affecting the pricing of the crypto market.

For these reasons, exchanges say that Ethereum (ETH) is currently more at risk than Bitcoin (BTC) and points out that there is a general decline in the crypto market. Kraken adds:

“It is difficult to determine what awaits the crypto markets. However, the on-chain data is currently charting a slightly downward trend. Metrics such as FX net position change suggest market participants are potentially moving BTC and ETH to long-term stockpiling and marketable supply.”

– Source: SOMAG News

Via this site: Selling Pressure Mounts for Ethereum! ETH Price Might See More Downside In Coming Days!

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