Ethereum Yet To Shake Off 2022 Bear Hangover: Glassnode

Data from Glassnode shows that Ethereum is still experiencing negative momentum despite the asset’s year-to-date rise.

Ethereum MVRV ratio recently indicated negative momentum

According to the latest weekly report from Glass knot, the MVRV ratio recently fell below its 180-day moving average (MA). THE “Market Value to Realized Value Ratio (MVRV)» refers to an indicator that measures the ratio between Ethereum market capitalization and realized capitalization.

THE “cap made“Here is a capitalization model for ETH that assumes that the true value of any coin in circulation is the price at which it last moved on the blockchain. This is of course different from market capitalization, which calculates the total value of the asset using the current spot price.

Since the price at which each coin last moved on the network can be considered to be the price at which it was purchased, the realized cap can be considered as the sum of the total capital that investors used to purchase of ETH.

As the MVRV ratio compares the holders’ current value (the market capitalization) to the amount they have invested in the cryptocurrency, it can provide us with information about their profit/loss status.

Now here is a chart that shows the trend of the Ethereum MVRV ratio, as well as its 180-day MA, over the past few years:

Ethereum MVRV Ratio

The two metrics have gone through a cross in recent days | Source: Glassnode's The Week Onchain - Week 44, 2023

When the MVRV ratio is above 1, it means that the average investor is currently making profits, while a ratio below this level implies loss dominance in the market.

From the chart, it is visible that the Ethereum MVRV ratio observed some increase when the rally started early this year. During this period, the indicator remained above its 180-day MA.

“Periods when the MVRV ratio trades above this long-term average indicate that investor profitability is increasingly significant and is often a signal of a rising market,” explains Glassnode.

However, over the past few months, as Ethereum price has struggled, the metric has fallen below its 180-day MA. The analytics firm notes that “despite the positive market performance for ETH year-to-date, by this measure the market is still experiencing negative momentum.”

As the chart shows, the Ethereum MVRV ratio has only recently started to exceed this mark, following the rally towards the $1,800 level. However, it is still very early in the breakout, so it is unclear whether it will actually hold at this level.

“It appears that the consequences of the 2022 bear are still slowly dissolving,” the report said. It is not something new that ETH is going through a phase like this; As the chart highlights, the asset has also faced similar periods of uncertainty in the past.

ETH Price

At the time of writing, Ethereum is trading around $1,800, up 1% over the past week.

Ethereum Price Chart

ETH has enjoyed some bullish momentum recently | Source: ETHUSD on TradingView

Featured image by Kanchanara on, charts from,

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