Ethereum Approaches “Opportunity” Zone, As Seen in This Metric by Santiment

According to Santiment, Ethereum may be nearing an “opportunity zone,” where prices typically rebound.

In a recent Santiment Insights report, the on-chain analytics platform notes, “ETH’s MVRV 90D, which measures the mid-term profit/loss of holders, is showing that we are almost into the opportunity zone, which historically saw a local bottom being developed with a decent R/R.”

? #Ethereum has seen quite the #bloodbath here in May, and has rebounded mildly to ~$2,040. Our latest $ETH analysis covers the highest volume spike of the year, excessively #short funding rates, rising supply on exchanges in May, and plenty more. ? https://t.co/bwlUfz3G9f pic.twitter.com/BJ8R9nVcaB

— Santiment (@santimentfeed) May 16, 2022

Santiment’s MVRV indicates the sentimental mood surrounding an asset at any given time, deducing the chances of future price movement based on probability. MVRV, or Market Value to Realized Value, is a ratio that indicates if the price of an asset is fair or not. As a standalone metric, MVRV could be used to infer market tops and bottoms.

Santiment also reports that Ethereum saw one of its highest weekly trading volumes despite market conditions, stating “this week saw the highest trading volume for ETH (even more than the previous meltdown in Jan 2022) and it looks like that’s some decent capitulation volume.”

The first day in May also saw a huge increase in supply on exchanges as folks rushed to exit their positions, as compared to last year’s trend of declining exchange balances. This impacted the price as Ethereum fell to lows of $1,701 on May 12.

In the latest market rebound, Ethereum has risen by nearly 3% in the past 24 hours to reach intraday highs of $2,095, seen at the time of writing. Ethereum currently trades at $2,082.

? #Ethereum $ETH Number of Addresses Holding 10+ Coins just reached a 16-month high of 289,240

View metric:https://t.co/6ggy1nLbSD pic.twitter.com/Q1f1YMM2l3

— glassnode alerts (@glassnodealerts) May 17, 2022

Per Glassnode alerts, the ETH number of addresses holding more than 10 coins just reached a 16-month high of 289,240, suggesting either an influx of large holders or simply retail holders increasing their supply.

Ethereum co-founder bares his inner struggles

In a recent thread of tweets, Ethereum co-founder Vitalik Buterin bares his inner struggles, which he calls “some still open contradictions in my thoughts and my values.”

Thread: some still open contradictions in my thoughts and my values, that I have been thinking about but still don’t feel like I’ve fully resolved.

— vitalik.eth (@VitalikButerin) May 17, 2022

He speaks on the contradiction between his desire to see Ethereum become a more Bitcoin-like system and the realization that getting there requires quite a lot of active, coordinated short-term change.

Buterin also highlighted his desire to see Ethereum “become an L1 that can survive truly extreme circumstances.”