Ethereum MVRV Tops 2.10, FOMO Could Fuel Next Rally
Ethereum MVRV ratio recently topped 2.10 as ETH approached a $4.9k all-time high, signaling renewed FOMO among traders. On-chain data shows Open Interest dropped nearly 7% in a single session, wiping out about $10 billion in leveraged positions over three days—a classic derivative deleveraging after an extended rally. Historically, spikes in Ethereum MVRV have marked local tops, such as in March 2024 when a 2.35 MVRV ratio preceded a 50% correction. However, August’s price action diverges: despite profit-taking pulling ETH back to $4k after a mid-month peak, the market absorbed selling pressure and logged a higher high at $4.9k. The second MVRV surge above 2.10 on August 22 underlines structural resilience and suggests FOMO could drive the next leg higher. For crypto traders, this setup highlights short-term volatility amid a bullish foundation, with derivative liquidations potentially creating buying opportunities as momentum builds toward new highs.
Bullish
The MVRV ratio topping 2.10 signals overheating and FOMO, but the market’s ability to absorb a $10 billion liquidation cascade and post a higher high at $4.9k demonstrates underlying strength. Historically, MVRV spikes preceded sharp corrections, such as March 2024’s 2.35 peak and subsequent 50% drop. However, the August divergence—profit-taking followed by renewed upside—indicates traders are stepping in on dips, supporting a bullish narrative. The sharp Open Interest retracement reflects derivative deleveraging, which often clears the way for fresh capital. In the short term, volatility may persist around key MVRV levels, but the structural resilience and FOMO-driven momentum suggest a sustained rally is likely, making ETH a buy-on-dip opportunity for traders.