Ethereum MVRV Flashes Red—ETH to Plunge 40% or Hit $10K?

NAIROBI (CoinChapter.com)— Ethereum is at a critical crossroads as its MVRV ratio drops below a key threshold, raising fears of a repeat of its June 2024 price collapse. At the same time, institutional players are making big bets on ETH, calling it the “gold standard” of DeFi. Will Ethereum crash 40% again, or is a $10,000 breakout on the horizon?

Ethereum’s MVRV Flashes Red—Will History Repeat Itself?

Ethereum’s MVRV ratio, a key metric for measuring profitability among holders, has fallen below its 160-day moving average. The last time this happened, Ethereum nosedived from $3,500 to $2,100, a brutal 40% drop.

Crypto analyst Ali highlighted this warning sign, noting that ETH could be at risk of another correction. Compounding the concern, Ethereum’s supply is growing by 60,000 ETH per month, potentially diluting the market.

However, there’s still hope. Ethereum is holding a crucial support zone between $2,230 and $2,610, with 62.27 million ETH locked in nearly 12 million wallets. If this support holds, Ethereum could avoid a major collapse.

Trump’s Ethereum Bet—Is Wall Street Loading Up on ETH?

While traders panic, institutional giants are quietly making moves. Former UBS bond trader Vivek Raman believes Ethereum is experiencing a “structural” shift, setting it up for a massive 2025 rally.

Trump’s World Liberty Finance DeFi project has been aggressively accumulating ETH, now holding 64% of its $400 million portfolio in Ethereum and Lido staked ETH (stETH). Meanwhile, hedge funds and asset managers are all-in on tokenization, with Ethereum positioned as the primary blockchain for this financial evolution.

Additionally, the repeal of Biden’s SAB 121 rule could open the floodgates for banks to custody ETH, BTC, and other tokenized assets. If this happens, Ethereum’s demand could skyrocket overnight.

Ethereum Price Headed to $10,000? Some Analysts Say Yes

Despite ETH’s 13.5% drop from its January highs, some analysts are making bold predictions. Ted Pillows believes Ethereum will break $4,000 resistance and rally to $9,000-$10,000 within months, driven by institutional accumulation.

Another analyst, Crypto Admiral, claims Ethereum is “on the verge of something big”, suggesting the market is underestimating its potential.

February has historically been a bullish month for Ethereum, providing a glimmer of hope after a weak January. If ETH can break out of its current range, bulls could regain control. However, if the MVRV indicator proves accurate, Ethereum may not be out of the woods yet.

Will Ethereum crash like in 2024, or is this the perfect dip before a historic breakout? The market is at a tipping point, and the next few weeks will decide ETH’s fate.

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