We have summarized the best Ethereum ETH fundamental indicators for price analysis.
As for all models, there are always limitations, and no model is 100% accurate. However, if you combine and evaluate a few models and compare them, you might have a chance to come closer to an accurate conclusion.
No Financial Advice, Do your own research. Information source only.
Summary: Ethereum ETH Fundamental Indicators
In the table, we have summarized the ETH fundamental indicators we have identified and analyzed with Glassnode software.
Also, you see the current state of each fundamental indicator.
Read more and we describe each model for price analysis.
Ethereum Gas Fees (Gwei)
Ethereum gas fees are an indication of the demand on the blockchain.
It’s a measurement of how many users are willing to pay transaction fees to be added to the blockchain.
As you can see in the graph above, the transaction gas price in gwei on the Ethereum network peaked during the summer of 2020, the 2021 spring, and the 2021 fall.
Summer 2020 was the Defi summer when everything connected or related to Web3 and Defi had a nice rush. Also, Microstrategy started to accumulate Bitcoin in August 2020. Spring 2021 was when Tesla announced they bought Bitcoin and Coinbase did their IPO. Fall 2021 was when all markets peaked before the global inflation war started with higher interest rate. Of course, later the war in Ukraine started early 2022, and many supply chains were interrupted.
Fall 2022 the price has fallen back and the transaction fees are low which is both perfect for an accumulation phase.
Ethereum MVRV Ratio - Market Value / Realized Value
The Market Value to Realized Value Ratio (MVRV Ration) gives an indication of when ETH is traded price is below a “fair value”.
The metric was created by David Puell and Murad Muhmudov. Here, you can read more about the MVRV ratio.
Ethereum NUPL - Net unrealized profit/loss
Net Unrealized Profit/Loss (NUPL) is the difference between Relative Unrealized Profit and Relative Unrealized Loss.
This ETH fundamental metric indicates whether the market is in capitulation or euphoria.
As you can see in the graph above from Glassnode, the color scheme has correlated reasonably well with the price in history. You can see a similar pattern with the Bitcoin BTC NUPL fundamental indicator.
- Red: Capitulation
- Orange: Hope-Fear
- Yellow: Optimism – Anxiety
- Green: Belief – Denial
- Blue: Euphoria – Greed
Number of Ethereum addresses holding over 1, 10, 100, 1.000, 10.000. As you can see, they are all increasing in the end indicating there is less and less supply in ETH on the market.
In the graph above from Glassnode, you can see ETH addresses holding over a certain amount of ETH in them according to the color scheme below (also seen in the graph).
As you can see, all addresses are increasing indicating ETH is in a massive accumulation phase.
Ethereum Staking Deposits
Number of Ethereum deposited into ETH 2.0 staking contracts is increasing over time and taking supply of the open market.
Ethereum ETH 2.0 staking deposits give information about how many ETH is leaving the market to be staked. Staked ETH 2.0 has no release date, and these coins are taken off the market, decreasing the available supply on the open market.
As you can see in the graph above from Glassnode, the Ethereum ETH 2.0 staking deposits are increasing steadily over time. The means there is less and less available ETH supply to buy and less ETH is required to move the market price.