🟢 Is Ethereum's Capitulation a Signal to Buy?
Ethereum's on-chain data is flashing a major signal. The MVRV Z-Score has dropped to -0.42, pushing it into the historical capitulation zone. This metric shows the market price is now below the average price paid by investors, indicating widespread selling and pain.
This creates a classic investor dilemma. On one hand, capitulation zones have often preceded major buying opportunities, as seen in past cycles. Some analysts view this as a chance to accumulate at a discount. On the other hand, this reading is not as severe as the absolute bottoms of past bear markets (like -0.76 in 2018), suggesting the selling pressure may not be fully exhausted yet.
The market is in a tug-of-war. While spot ETH ETFs are seeing strong institutional inflows, broader market outflows show retail fear is high.
What's next? This is a high-conviction moment. Is this the final flush before a reversal, or just another step down? History suggests watching for a stabilization in the Z-Score combined with a surge in sustained buying volume.
#Ethereum #ETH #MVRV #CryptoAnalysis
