Crypto analytics firm Santiment says Ethereum (ETH) is showing signals that could foreshadow some headwinds for the second-largest digital asset in the near future.
In a new report, Santiment says Ethereum’s MVRV (market value to realized value) is putting ETH in a vulnerable spot. MVRV compares an asset’s total market cap to its realized value and can be used to time market tops and bottoms.
The firm says Ethereum’s MVRV is hovering at a high-risk area.
Santiment also says inflows of Ethereum to exchanges have accelerated as of late. According to the crypto insights firm, the increased exchange inflows could mean that ETH sees some selling pressure in the short term.
Santiment says not all of the available data is pointing to bearish pressure for Ethereum. The firm points to a significant surge in active addresses, as well as a huge recent spike in network growth.
You can read Santiment’s full report on Ethereum here.