Crypto: Analysts Debate Whether Ether Has Capitulated Or Has Further To Fall

Analysts say Ether’s MVRV Z-Score has entered capitulation territory at -0.42 after falling 30% in a fortnight, though it is still far from its worst score.

Ethereum has hit a zone typically associated with mass selling, with an MVRV Z-Score returning a score of -0.42 — though analysts are split on whether the price of Ether is close to bottoming out.

The MVRV Z-Score is a metric used to assess whether a crypto asset is overvalued or undervalued by comparing its market value to its realized value, which reflects the total value of Ether based on the price at which it was last transacted.

The metric was created to identify periods of market euphoria or capitulation when market value was considerably higher or lower than realized value.

CryptoQuant analyst and Alphractal founder and CEO, Joao Wedson, said the score “shows that Ethereum is indeed going through a clear capitulation process.”

However, the analyst said the data “does not compare to the intensity” seen at the major bottoms of the 2018 and 2022 bear markets.

The lowest value in history was -0.76, recorded in December 2018, said Wedson.

The analyst cautioned that further downsides could be possible before any meaningful recovery.

“The market is already under stress, but historically, there is still room for further downside before a definitive structural bottom is formed,” he said.

The price of Ether has fallen 30% over the past fortnight, reaching a bear market low of $1,825 on Friday before a minor recovery to $2,100 on Monday.

Source: CoinTelegraph