Analysis: ETH has entered a potential panic selling zone, with the MVRV indicator turning negative, but the market is divided on whether it has bottomed out.

According to ME News, on February 10th (UTC+8), on-chain data shows that Ethereum has entered a range typically associated with large-scale market sell-offs. The MVRV Z-Score has fallen to -0.42. This indicator compares market capitalization with realized market capitalization to determine whether an asset is overvalued or undervalued. However, there is still significant disagreement in the market regarding whether ETH is nearing its cyclical bottom. Some analysts believe that ETH prices may still have further downside potential because the MVRV Z-Score is still far from the bottom levels of the 2018 and 2022 bear markets (historically low at around -0.76). Others point out that from the perspective of on-chain activity, protocol evolution, and ecosystem structure, Ethereum's fundamentals have not deteriorated substantially; on the contrary, they continue to improve in several key dimensions. It is still too early to conclude that ETH has bottomed out; the current period may be an important window to observe ETH investment opportunities. (Source: ME)