Analysts say Ether’s MVRV Z-Score has entered capitulation territory at -0.42 after falling 30% in a fortnight, though it’s 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 show periods of market euphoria or capitulation when the market value was considerably higher or lower than the realized value.
