ETH Enters Potential Panic Selling Zone, MVRV Z-Score Turns Negative Amid Market Disagreement on Bottom

Odaily Planet Daily News: On-chain data shows that Ethereum is currently entering a range that usually corresponds to large-scale market selling, with the MVRV Z-Score indicator falling back to -0.42. This indicator compares market capitalization with realized market capitalization to determine whether an asset is overvalued or undervalued. However, there is still significant divergence in the market regarding whether ETH is approaching the bottom of the cycle. Some analysts believe that ETH prices may still have further downward potential, as the MVRV Z-Score indicator is still some distance from the bear market bottom levels of 2018 and 2022 (historical low of about -0.76). Other viewpoints point out that from on-chain activity, protocol evolution, and ecosystem structure, Ethereum's fundamentals have not shown substantial deterioration, but are instead continuing to improve in several key dimensions. It is still too early to determine whether ETH has completed its bottoming process, and the current period may be an important window for observing ETH allocation opportunities. (Cointelegraph)