Ethereum: Here’s how to buy and sell ETH on the market in Q1

• Total ETH exchange outflows reached $4 billion in Q1 2024
• The MVRV ratio indicates that the currency was trading slightly below its realized value

according to Data Released by IntoTheBlock, Ethereum [ETH] Total outflows from cryptocurrency exchanges reached $4 billion in the first quarter of the year. This indicates an increase in coin accumulation by market participants over the course of 90 days, despite ETH falling in value by 10% after peaking at $4,065 on March 11.

The altcoin’s rise above $3,500 towards $4,000 between March 4 and 19 triggered a wave of selling. This has contributed to an increase in its exchange reserves, with the annual (y-to-date) assessment of currency reserves revealing a 5% decline.

This decline showed that ETH accumulation significantly exceeded distribution during the quarter.

ETH on-chain in the first quarter

Between January and March, the number of ETH wallet addresses holding between 100 and 100,000 coins fell by 2%, according to Santiment. This confirmed a decline in the holding of ETH by the group of investors, who are known to be market movers.

At the time of writing, there were 45,623 wallet addresses holding between 100 and 100,000 ETH. These addresses currently hold 36% of the circulating supply of ETH.

On the contrary, during the period under review, the number of addresses holding between zero and 100 ETH increased. As of March 31, they stood at 118.25 million, up 6% over the first quarter of the year. At the time of writing, this category of ETH holders controlled 10% of the coin’s supply.

Also, the rise in ETH price above $3,500 in Q1 resulted in a higher market cap to realized value (MVRV) ratio.

---

Read about Ethereum [ETH] Price forecasts 2024-25

---

This metric measures when an asset is overvalued or undervalued. When its ratio is high and in an upward trend, it indicates that the market value of the asset has exceeded its realized value. When this happens, most asset owners will make a profit.

Conversely, when an asset’s MVRV declines, it is considered undervalued compared to its realized value. Investors who choose to sell their holdings at this point during the market cycle often do so at a loss.

ETH’s price surge to $4,000 on March 11 pushed the MVRV ratio to its highest level since the beginning of the year at 138.38%.

Although ETH’s MVRV also declined after its price declined from its peak, it closed the quarter at a value of 107%. Less than 100% at the time of publication, ETH’s MVRV ratio showed that its price was slightly below the average price at which all coins were last moved on-chain.