The daily Market Value to Realized Value (MVRV) ratio for Ethereum (ETH) has crossed the 160-day Simple Moving Average. Known as the Golden Cross, this move marks the end of the ETH capitulation phase, and the beginning of a dynamic shift.
Source: X
Ethereum Golden Cross is a bullish supporter
In the past three years, Golden Cross has led a massive recovery of ETH as the accumulation authority continued to distribute. This was seen in early 2023, late 2023-Q1 2024, Q2 2024 and Q3 2024 when the price of ETH increased by 50%, 166%, 74% and 113% respectively.
The data also reveals recent trends, last week and marked the third consecutive week of gains for Ethereum ETFs. That week brought in $103.9 million, bringing the July total to $337.74 million.
That same week, Bitmine, the largest Ethereum-based financial company, to buy at 9,900 ETH. This caused the stock to rise by 27% last month.
Also, the whales have been pile up aggressively digital economy since June. Medium whale bags (holding 1,000 – 10,000 ETH) rose from 4,750 in June to 4,850 at the end of July. The mega-whales wallets (with 100,000 ETH) together hold 17.41 million ETH (more than 22% of the total in circulation).
Demand for Ethereum has also been stronger than Bitcoin over the past month as shown by the ETH/BTC chart below.
Source: Marketing perspective
In addition, the number of ETH used has increased from 63 billion in July 1, to 77 billion, which shows a positive attitude in the Internet.
Valuable support and resistance areas
ETH has risen 0.85% in the last 24h, removing more than $100 million in short-term trading and bringing its current price to $1,939.
To maintain the Golden Cross, bulls need to defend the $1,850 – $1,900 zone. A retracement of prices above the 200-day MA ($2,134) is necessary to confirm a true macro reversal. This could also pave the way for reaching the $2,300 resistance zone.
The main events that can affect the Ethereum price include the announcement of Fed rates. Some are long-term Senate vote on the CLARITY Act on August 3 and the Middle East conflict.
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