• Ethereum daily MVRV its 160-day SMA have formed the rare Golden Cross, signalling a bullish reversal.

  • This on-chain metric is supported by increased whale accumulation, ETH ETF inflows and high staking rate.

  • Passage of the CLARITY Act on Monday could trigger a rally as institutionsupscale their crypto positions following the diffusion of regulatory fears.

The daily Market Value to Realized Value (MVRV) ratio of Ethereum (ETH) has decisively crossed above its 160-day Simple Moving Average. Known as a Golden Cross, the move signals the end of ETH’s capitulation phase, and the beginning of a bullish reversal.

Ethereum Golden Cross and bullish supporters

In the past three years, a Golden Cross preceded major ETH recoveries as the accumulation regime overpowered distribution. This was seen in early 2023, late 2023-Q1 2024, Q2 2024 and Q3 2024 where the price of ETH surged by 50%, 166%, 74% and 113% respectively.

Data also reveals renewed institutional engagements, with the past week marking the third consecutive week of spot Ethereum ETFs inflows. That week brought in $103.9 million, bringing July’s total net inflows to $337.74 million.

In the same week, Bitmine, the largest public Ethereum treasury firm, purchased over 9,900 ETH. This contributed to the coin’s 27% hike in the past month.Â

Even more, whales have been aggressively accumulating the digital asset since June. Wallets of mid-tier whales (holding 1,000 – 10,000 ETH) increased from 4,750 in June to 4,850 by late July. Wallets of mega-whales (holding over 100,000 ETH) collectively hold 17.41 million ETH (over 22% of the total circulating supply).

Ethereum buy demand has also been outpacing that of Bitcoin in the past month as shown by the rising ETH/BTC ratio below.

Additionally, the amount of ETH staked has risen from 63 billion in July 1, to a present 77 billion, indicating positive sentiment in the network.

Key price support and resistance zones

ETH is up 0.85% in the past 24h, wiping out over $100 million in short liquidations and bringing its current price to $1,939.

To maintain the Golden Cross, bulls need to defend the $1,850 – $1,900 demand zone. Further reclamation of prices above the 200-day MA ($2,134) is necessary to confirm a true macro trend reversal. This would also open the way to the $2,300 resistance zone.

Key events that could impact the near-term price of Ethereum include upcoming Fed rates announcement. Others are the tentative Senate floor vote on the CLARITY Act on August 3 and the Middle East conflict.

Was this writing helpful?

Trust with CoinPedia:

CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.

Investment Disclaimer:

All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.

Sponsored and Advertisements:

Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.