Key Takeaways
Ethereum sits at $4.5k, with MVRV hitting 2.5 after an 8% drop from ATH. Will FOMO drive the next leg, or is a deeper correction looming?
Ethereum [ETH] teeters at $4,500, caught between FOMO and greed.
On-chain, Open Interest (OI) retraced nearly 7% in a single session. In fact, in just three days, traders wiped out roughly $10 billion in leverage, marking a classic derivative deleveraging after an overextended run.
At the same time, Ethereum’s Market Value to Realized Value (MVRV) ratio hit 2.10 as price flirted with its $4.9k ATH. Historically, each spike in this metric has marked a local top for ETH, pushing the price lower.
In short, ETH’s 10% drop on the 25th of August, off its $4,800 open, wasn’t a fluke. A peaking Ethereum MVRV signals an overheated market, where FUD, and liquidations often dominate before the next leg of accumulation.
Look back to March 2024: ETH topped at $4,091 as Ethereum MVRV hit 2.35, meaning investors were sitting on 2.35x unrealized gains.
At that point, traders saw their profits more than double before the market corrected.
The result? ETH dropped 50% over the following seven weeks, dipping below $3,000 before smart money and fresh hands stepped in, buying the dip and triggering a bullish reversal.
FOMO returns as Ethereum MVRV hits key level
Ethereum’s FOMO is driving the next leg for ETH.
In August, Ethereum MVRV blasted above 2.10 twice. The first spike hit on the 13th of August at $4,790, and a week later, profit-taki
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Author: Ritika Gupta
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