Some days ago, Ethereum (ETH) showed readiness to climb toward $3,000. But as last month neared its end, the momentum changed, leading the second most valuable cryptocurrency to drop below $2,600.

Will ETH’s price recover? This is one thing that investors will want to know. In this on-chain analysis, BeInCrypto explains why the altcoin might soon reverse the trend.

Ethereum Bearish Outlook Eases

According to CryptoQuant, Ethereum’s price decrease caused a decline in the Taker Buy/Sell Ratio. This ratio is calculated as the buy volume divided by the sell volume in perpetual swap trades.

When the value is above 1, it means the trend is bullish. However, a value below 1 means that the trend is bearish. On October 31, Ethereum’s Taker Buy/Sell Ratio was 0.84, meaning that the sentiment was bearish at that time.

But as of this writing, the reading has increased and is on the verge of hitting a rating of 1. Should the indicator’s rating continue to climb, then ETH’s price might also follow in the same direction, suggesting that it could get close to $2,800 as it was some days back.

Read more: Ethereum ETF Explained: What It Is and How It Works

Another metric supporting the bias is the 30-day Market Value to Realized Value (MVRV) ratio. The MVRV ratio compares a crypto asset’s current market value to its realized value, offering insights into market tops and bottoms. 

When the MVRV ratio is high, it often signals that the asset might be overvalued, suggesting a market top. Conversely, a low MVRV ratio can indicate undervaluation, pointing toward a potential bottom. 

As of now, Ethereum’s

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Author: Victor Olanrewaju