Analysis: ETH Enters Potential Panic Selling Zone, MVRV Indicator Turns Negative but Market Divided on Whether Bottom is Reached

Odaily News On-chain data indicates that Ethereum has currently entered a zone typically associated with large-scale market sell-offs. The MVRV Z-Score has dropped to -0.42. This indicator, which compares market cap to realized cap, is used to assess whether an asset is overvalued or undervalued. However, there remains significant market disagreement on whether ETH is nearing a cycle bottom. Some analysts believe ETH prices may still have further downside potential, as the MVRV Z-Score remains some distance from the lows seen during the 2018 and 2022 bear market bottoms (historically around -0.76). Other viewpoints suggest that, judging from on-chain activity, protocol evolution, and ecosystem structure, Ethereum's fundamentals have not deteriorated substantially; instead, they continue to improve across several key dimensions. It is still premature to conclude that ETH has completed its bottoming process. The current period may represent a crucial window for observing potential ETH allocation opportunities. (Cointelegraph)