+ 7.05
+ 2.21%
+ 4.00
+ 1.18%
+ 6.32
+ 1.54%
+ 1.27
+ 0.94%
+ 1.54
+ 0.9%

Can Ethereum Hit $5,000 In Six Weeks? A Key Metric Suggest So

April 15, 2021 2:49 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Can Ethereum Hit $5,000 In Six Weeks? A Key Metric Suggest So

A key metric indicates that Ethereum (ETH) may have room to run up to $5,000 levels in the next weeks leading up to the end of May.

What Happened: The one-day moving average of the MVRV ratio, which is derived by dividing the Market Value of Ether by the Realized Value has reached a one-month high of 2.937, as per Glassnode, an on-chain market intelligence firm.

The Market Value implies the current price of the cryptocurrency whereas the Realized Value means the price the current holders of the coin paid on average.

At press time, ETH traded 4.05% higher at $2,471.89. The current price is just 0.23% lower than the $2,481 all-time high that ETH reached minutes before press time.

Why It Matters: Based on previous trends, the MVRV could rise to five by the end of May as the Realized Price is expected to rise over time, Cointelegraph first noted.

The current Realized Price is $802 and as more buyers flock to the market this metric will rise. 

The Realized Price has reportedly risen 15.1% in the past month and projecting this to the end of May means the Realized Price would be nearly $1,014 per ETH.

Multiplying the projected realized price by 5 implies ETH cold touch $5,070, an increase of 116%, according to Cointelegraph.

On Thursday, Glassnode also tweeted that the seven-day moving average of the NVA signal, which is akin to P/E in stocks has risen to a high of 1,108.895.

Ethereum blockchain is in the midst of an upgrade that will address the high cost of transactions on the network. The associated token is shooting for the stars even as social media darling Dogecoin (DOGE) struggles past the $0.15 levels.

On Thursday, DOGE traded 15.54% higher at $0.13, while the apex cryptocurrency, Bitcoin (BTC) traded 1.98% lower at $63,093.74.

Read Next: Coinbase Headed To $600 — Why Analyst Sees Crypto Exchange As 'Must-Own Stock' For Growth, Tech Buyers

Related Articles

DBS Bank Singapore Launches Asia's First Direct Crypto Offering To Clients

Asia’s largest bank has moved to offer its wealthiest clients direct access to cryptocurrencies. read more

7 Surprising Bitcoin Metrics You Should Watch Amid Latest Fall

Bitcoin (CRYPTO: BTC) recently saw a major downwards price movement after Tesla Inc. (NASDAQ: TSLA) announced it wouldn't b read more

SkyBridge's Scaramucci Says It Takes 'Diamond Hands' To Hold Bitcoin Right Now

Bitcoin (CRYPTO:BTC) is emerging as an asset class, said Anthony Scaramucci, founder and co-managing partner of SkyBridge Capital, Friday on CNBC's "Fast Money: Halftime Report." The Bitcoin price action in 2021 shows there is a tremendous amount of demand for the cryptocurrency, including institutional demand, Scaramucci said. read more

Elon Musk's Net Worth Drops $20B Since 'SNL,' Analyst Predicts Bitcoin Backtrack Will Increase Tesla Volatility

Elon Musk saw his net worth drop by over $20 billion since his May 8 appearance on SNL. read more