defied the school of thought that it was a slow move this cycle as its market cap jumped by over 9%. This increase placed its market cap at over $440 billion.
During this time, the altcoin’s price surpassed $3, 700 before its slight drop. But that was not the major highlight.AMBCrypto analyzed Ethereum’s on-chain condition and observed the Market Value to Realized Value ratio. This ratio provides insights into traders’ buying and selling behavior. It can also help to spot the bottoms and tops of an asset.For instance, the ratio was -4.90 in October 2023 while ETH changed hands at $1,566. Weeks later, the price crossed $2,000.
On both occasions, the price increased by 21.7% and 45.27% respectively. This time, Ethereum has only increased by 7.89%. Should the historical pattern repeat itself, the price could rally But that might only be the case if the market does not experience extreme volatility that could cause prices to nosedive. If this is the case, then the bullish prediction might be invalidated.In the meantime, traders took advantage of the price increase to realize some profits. This was something that ETH holders could not boast of in recent weeks.If the price of the cryptocurrency continues to increase, then the volume in profit could be double those in the red.
From a trading perspective, the large OI alongside the rising value might lead to a breakout. Should this be the case, ETH’s rise above $4,000 could be next.Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population.