Ethereum’s price has remained in range since June 2022
venturefounderAn analyst at blockchain data provider CryptoQuant has shared an insight into how the price of ETH could move, estimating from three on-chain valuation indicators.
First, consider the ETH MVRV Z score, which is a standard deviation that emphasizes the price and realized value extremes. The greater the Z, the greater the overvaluation, and vice versa. Second, ETH NUPL, or net unrealized profit and loss, is the difference between market cap and realized cap divided by market cap. Third is the ETH percentage supply in profit.
According to him, the ETH Z-score remains in the green zone; However, in the previous cycle, ETH held this position for a year and six months.
Based on the ETH NUPL, the indicator remains in the capitulation zone. However, Ethereum has spent less time than it did in the previous cycle, with only three months since the bear market began.
While the percent supply of ETH in profit has recently reached a new low of 40%, it is still below the 30% recorded in 2018 and March 2020. Furthermore, unlike the previous cycle, the price of Ethereum has remained in a range until June 2022 instead. than going down. At around $4,900, the market has reached a year since the top of the cycle.
JPMorgan predicts big catalyst for ETH price
The Ethereum Merge update occurred in mid-September and ushered in a transition to a proof-of-stake mechanism for the second largest cryptocurrency. JP Morgan’s analysts believe this, and an upcoming upgrade might be a catalyst for the ETH price.
“We believe that Ethereum Merge and indeed Ethereum Surge could be a huge factor in terms of expanding use-cases for blockchain into new areas including financial services.”
The Surge, an upcoming upgrade, hopes to reduce costs and make the ETH network safer and faster.
“We continue to view Ethereum Surge as a catalyst for growth in the cryptocurrency markets, which is visible at least 6-12 months away,” said the JP Morgan analyst.
