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With a daily rise of more than 10%, Ethereum is on its way to a market discovery over the most recent ATH of $3955. On May 3, the price reached $3200, and the price has been in exploration mode for less than a week. The altcoin’s MVRV-Z ranking, which is the ratio of market cap to realised cap and standard deviation of market cap, has reached its highest level since January 2018. In the long term, this is a bullish warning for Ethereum.
Also at its current price, ETH is undervalued, according to on-chain analysts. The Triple-Halvening is expected to lead to an increase in the price of ETH. The Triple-Halvening is the forthcoming equivalent of three halving occurrences for ETH, resulting in a 90% decrease in sell pressure from miners.
A decrease in selling pressure is positive for ETH because the accumulation of big HODLers makes a cascading sell-off more possible. With an uptick in everyday network purchases, led by the growing success of digital market makers such as SUSHI and UNI, token swapping is bullish for ETH. Furthermore, DEXs now account for a record of $432 billion in ETH exchange volume in the last 12 months, with over 2 million addresses trading on them.
Aside from addresses trading on DEXes, the number of Ethereum addresses getting from spot exchanges has reached a three-year high of 1655.57. The previous three-year high was set in early January 2021. This is notable for the altcoin’s market rally because interest across exchanges and participating traders drives the price a lot. When it comes to big HODLers, the concentration is low; ETH in circulation is the driver of liquidity and volatility.
Based on Skew data and the above metrics, the likelihood of ETH reaching $6000 by the end of 2021 is now 19%. This chance has changed over the rally, as seen in the chart below.
Though the chance of reaching $5000 is higher, crossing $6000 will bring Ethereum well ahead of other altcoins. At the rate of ETH market rise, the current price level is the perfect purchase zone for retail traders.