CryptoQuant analysts are recording growing demand for Ethereum even during a price correction. Users keep withdrawing coins from exchanges despite the pullback after reaching a new all-time high. Against this backdrop, the MVRV metric for BTC shows signs of weakening market momentum.
ETH Reserves Are Declining
According to CryptoQuant, Ethereum continues to show strong demand despite the market correction. While Bitcoin reserves on Binance remain relatively stable, the amount of ETH on the exchange is consistently decreasing. Such outflows usually indicate accumulation and reduced willingness of investors to sell in the short term.
This suggests that market participants keep buying ETH even during price consolidation. Compared to BTC, demand for Ethereum now looks stronger, analysts believe.
MVRV Shows Weakness in BTC Momentum
At the same time, CryptoQuant highlights a weakening bullish dynamic for Bitcoin. On the MVRV (Market Value to Realized Value) chart, a “death cross” has occurred: the 30-day moving average has dropped below the 365-day average. This is a technical signal pointing to reduced market momentum.
The MVRV metric compares the current market capitalization of an asset with its realized value – meaning the total sum investors paid for their coins. Rising MVRV suggests overheating, while declining values indicate weakening demand.
Comparison With 2021 Peak
Analysts say the situation resembles late 2021. Back then, BTC price rose from $64,900 to $69,000 (+6,3%), but MVRV decreased during the same period. This showed that the flow of capital into the market was weakening.
In the current cycle, the situation is similar: despite the price rise from $109,400 to $124,000 (+13,3%), MVRV is falling again. This indicates that even with institutional inflows through ETFs, the actual capital entering the market may be less active than it appears.
Analysts emphasize that ETFs have provided greater structural stability than in previous cycles. However, MVRV signals require attention, as they reflect a slowdown in market momentum.
This post is for informational purposes only and does not constitute advertising or investment advice. Please conduct your own research before making any financial decisions.
