Analysts of the CryptoQuant platform noted the appearance of on-chain signals characteristic of the formation of the Ethereum market minimum relative to bitcoin. Currently, the exchange rate of the second largest cryptocurrency is about 17 percent lower than its realized price, which is about $ 2,300. Since mid-May, the asset has been trading in the range of $1,500 to $2,000, which historically indicated that the coin was undervalued. The experts analyzed five key metrics and found that the ratio of the exchange rate to the realized price, as well as spot trading volumes, have already reached the levels observed during previous market reversals. However, other indicators, such as the MVRV metric and the ratio of stock inflows, do not yet confirm the final completion of the downward phase, remaining above historical lows.

Additional signals are coming from the supply dynamics. At the end of June, the volume of Ethereum withdrawals from Binance, the largest exchange, reached its maximum in the last three years, which often indicates the transfer of assets to self-storage or staking. Currently, a record 34 percent of the total supply of Ethereum is blocked in staking, which reduces the liquidity available for immediate sale and potentially reduces market volatility. At the same time, the share of Ethereum in the assets of spot exchange-traded funds began to recover after a long period of decline, increasing from 0.115 in June to 0.13. Analysts consider this dynamic as an initial sign of the return of institutional demand, although the current values are not yet sufficient to unequivocally confirm the change in the global trend.

Against the background of these processes, traditional financial markets have demonstrated increased volatility, which has had a corrective effect on the cryptocurrency sector. The price of bitcoin dropped below the $ 65,000 mark amid rising geopolitical tensions and concerns about a new wave of inflation caused by the excess of the price of Brent crude oil at $ 100 per barrel. The S&P 500 and Nasdaq indexes also ended trading lower, while yields on U.S. government bonds increased. As a result, the probability of an increase in the base rate of the US Federal Reserve at the July meeting has increased to 40 percent. In such circumstances, traders' opinions regarding the nearest price targets were divided.: Some experts call the $64,000 zone the nearest support, while others admit the possibility of a continued correction.

***

The material has been prepared solely for informational purposes and does not constitute financial advice or recommendation.