Ethereum

Flow

bullish

Bitcoin

Rise

<ul> 
 <li aria-level="1">Ethereum’s NVT ratio has decreased, indicating potential undervaluation and suggesting possible future price increases.</li> 
 <li aria-level="1">MACD indicator shows a bullish trend, signaling positive momentum for Ethereum’s market price.</li> 
 <li aria-level="1">Rise in Chaikin Money Flow (CMF) index reflects increased buying pressure, supporting a bullish outlook.</li> 
</ul> 
Ethereum has recently outperformed Bitcoin in the cryptocurrency market, registering a significant 8% increase in market price over the past week, compared to Bitcoin’s 3% gains. In the last 24 hours, Ethereum’s price has risen by over 3%. 
A notable development in <a href="https://www.ethnews.com/u-s-ethereum-etfs-likely-to-integrate-staking-returns-under-new-sec-boosting-eths-annual-percentage-yield-apy/">Ethereum’s market behavior</a> is the appearance of a golden cross on its chart, where the 50-day Simple Moving Average (SMA) has crossed above the 200-day SMA. This event last occurred in 2023 and was followed by strong performances from other altcoins, suggesting a similar trend could develop again. 
The decrease in <a href="https://www.ethnews.com/justin-drake-unveils-beam-chain-a-new-era-for-ethereum/">Ethereum’s Network</a> Value to Transactions (NVT) ratio suggests that the asset may currently be undervalued, pointing to the potential for future price gains. This assessment is bolstered by various technical analyses. 
<figure id="attachment_110772" aria-describedby="caption-attachment-110772" style="width: 100%" class="wp-caption aligncenter">
 <img loading="lazy" decoding="async" class="size-full wp-image-110772" src="https://www.ethnews.com/wp-content/uploads/2024/12/eth-alt-season.png" alt="eth-alt-season" width="2048" height="1042">
 <figcaption id="caption-attachment-110772" class="wp-caption-text">
 Golden cross appeared on ETH’s chart – Via → <a href="https://x.com/el_crypto_prof/status/1865043860381990999">@el_crypto_prof</a>
 </figcaption>
</figure> 
For instance, the Moving Average Convergence Divergence (MACD) indicator is currently displaying a bullish pattern, implying a positive momentum in Ethereum’s market price.&nbsp; 
Additionally, an increase in the Chaikin Money Flow (CMF) index indicates rising buying pressure, further supporting the likelihood of an upward movement in Ethereum’s price. These indicators collectively provide a strong case for Ethereum’s continued growth in the cryptocurrency market. 
<figure id="attachment_110776" aria-describedby="caption-attachment-110776" style="width: 100%" class="wp-caption aligncenter">
 <img loading="lazy" decoding="async" class="size-full wp-image-110776" src="https://www.ethnews.com/wp-content/uploads/2024/12/eth-Chaikin-Money-Flow-CMF.png" alt="eth-Chaikin Money Flow (CMF)" width="1521" height="758">
 <figcaption id="caption-attachment-110776" class="wp-caption-text">
 Soyrce: Tradingview
 </figcaption>
</figure> 
The broader altcoin market appears to be entering what is termed an “altcoin season,” as indicated by the altcoin season index which currently stands at 86. A value above 75 traditionally signals a market environment where altcoins outperform Bitcoin. 
Reflecting this trend, other major altcoins such as <a href="https://www.ethnews.com/justin-bons-claims-ripples-xrp-network-is-centralized-challenging-its-decentralization-claims-with-detailed-arguments-on-x/">XRP</a>, BNB, and Dogecoin have also experienced price increases in the last 24 hours, with hikes of 6%, 3.3%, and 4%, respectively. 
 Despite these gains, there has been a noted decrease in investor confidence in these tokens, highlighting a curious divergence between market performance and investor sentiment. 
<div class="cryptoboxes" id="mcw-12523" data-realtime="on">
 <div class="mcw-chart mcw-chart-light" data-font="inherit" data-chartcoin="ETH" data-chartcurrency="USD" data-chartrate="1.000268" data-charttype="chart" data-chartview="day" data-charttheme="light" data-chartsmooth="true" data-chartareacolor="" data-chartbgcolor=""></div>
</div> 
The current price of Ethereum (ETH) is $4,001.7, showing a marginal increase of 0.04%. Ethereum recently breached the $4,000 resistance, a level it has not seen since March, with a daily trading volume of approximately $21.15 billion and a market cap of $482 billion. 
Key Observations: 
<ul> 
 <li>Trend: Ethereum is exhibiting strong bullish momentum, confirmed by a “golden cross” on the daily chart.</li> 
 <li>Support and Resistance: Key support levels are around $3,800, with resistance at $4,200. A sustained breakout could target higher levels, such as $4,500–$5,000.</li> 
</ul> 
The post <a href="https://www.ethnews.com/is-ethereum-undervalued-insights-from-macd-and-nvt-ratios/">Is Ethereum Undervalued? Insights from MACD and NVT Ratios</a> appeared first on <a href="https://www.ethnews.com">ETHNews</a>.

Is Ethereum Undervalued? Insights from MACD and NVT Ratios

ETHNews

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