- ETH trades 85% above its average acquisition cost, signaling strong recovery.
- Market shifts from linear growth to cyclical accumulation and distribution.
- MVRV ratio indicates predictable entry and exit points for traders.
Ethereum (ETH) is currently trading 85% above its average acquisition cost, signaling a robust recovery and evolving market dynamics as of September 2025. Historically, ETH exhibited steady upward trends, but recent data from CryptoQuant reveals a significant shift. The pattern, which showed clear market tops forming in March, May, and December 2020-2021, has transitioned into defined cycles of accumulation and distribution. This change suggests that Ethereum is no longer following a linear growth trajectory but is instead adapting to more predictable cyclical movements.
The chart highlights key indicators such as ETH-MVRV and Realized Price, which underscore this transition. The MVRV (Market Value to Realized Value) ratio, a popular metric for assessing market tops and bottoms, shows periods of overvaluation followed by corrections. These cycles indicate that investors are accumulating ETH during dips and distributing during peaks, a behavior typical of maturing markets. The steady uptrend post-2021, despite volatility, reflects growing confidence and utility in the Ethereum network, driven by upgrades like the Merge and increased DeFi adoption.
This cyclical pattern could imply a maturing market, where speculative fervor is giving way to strategic accumulation. For traders, this offers opportunities to capitalize on predictable entry and exit points. However, it also warns of potential risks if distribution phases lead to prolonged bear markets. Long-term holders might view this as a positive sign of stability, while short-term speculators should brace for increased volatility.
As Ethereum continues to evolve, monitoring these cycles will be crucial. The 85% premium above acquisition cost suggests strong bullish sentiment, but the formation of market tops hints at an impending correction. Investors should stay vigilant, leveraging tools like MVRV and on-chain analytics to navigate this new phase.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
