Analyst Claims ETH Valuation Metric is Surging but Not Overpriced

Ether (ETH) is showing signs of being overvalued compared to Bitcoin (BTC), according to a key metric called Market Value Realized Value (MVRV). However, some analysts argue that it may not be in overbought territory just yet. CryptoQuant CEO Ki Young Ju noted that the rising MVRV of Ethereum is accompanied by an increase in transaction volume and active addresses on the network. MVRV indicates whether an asset is trading above or below its fair price. Over the past 30 days, Ethereum’s MVRV has risen by 29.9% to 91.43%, while Bitcoin’s MVRV has fallen by 10.8% to 127.41%. A high MVRV suggests that Ether is overvalued, while a decline suggests the market is cooling off. However, with spot Ether ETFs expected to trade soon, the high MVRV is unlikely to deter investors. Analysts predict that Ether could reach $10,000 by the end of 2024. Ethereum is currently trading at $3,556 and has seen a 14.81% increase over the past 30 days. Its dominance in the cryptocurrency market is growing, while Bitcoin’s dominance has slightly dropped.