ETH & alts: looking towards London hard fork
MVRV is quite an interesting metric. In short, it shows the average profit or loss of all token holders based on the price when each token last moved. Usually we are using MVRV extremums for triggering special signals, but now we just want to show the current alts to ETH disposition. How are alts aligned waiting for ETH hard fork.
- Long read on MVRV: Using MVRV to Find Out How Close an Asset is to an "Opportunity" or "Danger" Zone
I guess we could combine all data on a single chart:
What do we see here?
ETH price represented with candles, ETH MVRV 30d (red) and 5 alts MVRVs 30d (grey). GRT, UNI, MKR, MATIC and AAVE selected as alts.
Looking at the very right: ETH is currently at +9% MVRV 30d (red line is on top of grey ones). It means that an average profit of one month ETH holders is around 9%. Not bad for holders. More risk for buyers. Like ETH being a bit overbought.
Selected alts very from +4 to +9% the same time (grey lines are below red one). Less risk to buy. More neutral.
What could this layout indicate?
Despite Ether having relatively high MVRV 30d, it reflects market expectations connected to anticipated London hard fork. This is normal. ETH is best prepared to this event.
Altcoins are close to neutral. Selling is not recommended. Buying feels less risky at this point.
We could say that others are waiting for post hard fork ETH and BTC movements, sitting in "wait-and-see" position. Either to jump higher and ride on an upgrade fact. Either to dump on "buy the rumour sell the news". And this is nicely reflected in data.
Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.