Did Ethereum price hit a local market top?

Ethereum price has posted double-digit gains over the past week as analysts evaluate whether the altcoin is on track to hit a local top. Analysts evaluate metrics like Market Value to Realized Value (MVRV), funding rates and debt to predict Ethereum’s next move. 

Ethereum price could hit the local top in its uptrend

Ethereum price hit a 30-day high at $3,471. The altcoin resumed its upward climb as proponents evaluated metrics like MVRV, debt created and funding rates to evaluate whether the Ethereum price hit a local top. 

MVRV calculates the average profit/loss among Ethereum holders. Analysts at the crypto intelligence platform Santiment evaluated Ethereum’s MVRV for 30 days and observed high values. Ethereum price is now in dangerous territory, and the altcoin could hit a wall in its uptrend. 

MVRV Ethereum (30 days)

Based on the amount of debt created in DAI stablecoins, there is a low risk if the Ethereum price hits the local top. 

Funding rate, a metric used to identify the direction of a cryptocurrency’s price trend, reveals the scope for climbing higher. Ethereum’s funding rate could hit October 2021 levels, coinciding with the end of a price rally in the altcoin. 

In his tweet, Millionaire Robert Kiyosaki recently predicted that the dollar will implode and recommended investors accumulate Ethereum, Bitcoin and Solana. 

While proponents and experts recommend Ethereum accumulation, large wallet investors and long-term holders of the altcoin have scooped up nearly 4 million ETH through the recent price drop. Accumulation by investors could fuel a shortage and bring about a supply squeeze in the altcoin. 

Historically, an Ethereum supply squeeze is a precursor to a price rally in the altcoin. 

Analysts have evaluated the Ethereum price trend and set a target of $4,000. FXStreet analysts believe Ethereum price could move beyond the 200-day moving average and pretest the low volume node at $3,700 to the $4,000 target.