Ethereum’s MVRV Z-Score, a key metric used to assess whether ETH is overvalued or undervalued, has dropped to its lowest level in 17 months. This suggests that the second-largest cryptocurrency may be approaching a market bottom, potentially setting the stage for a major price rebound.
Ethereum’s MVRV Z-Score Nears Accumulation Zone
The MVRV Z-Score, which measures the relationship between Ethereum’s market value and realized value, is now hovering near the green zone—historically associated with undervaluation. A similar dip in October 2023 preceded ETH’s impressive 160% surge to the $4,000 mark, mirroring patterns seen in December 2022 and March 2020, both of which led to historic bull runs.
Institutional and Whale Accumulation on the Rise
On-chain data further reinforces bullish sentiment. According to CryptoQuant, daily ETH inflows into accumulation addresses have hit their highest levels in years, surpassing accumulation phases that previously signaled major uptrends. Additionally, Glassnode data reveals that Ethereum whales holding between 1,000 and 10,000 ETH have been aggressively accumulating since July 2024, coinciding with the launch of Ether spot exchange-traded funds (ETFs) in the U.S.
This uptick in whale and institutional accumulation suggests that large investors are taking advantage of ETH’s perceived undervaluation, anticipating a significant price recovery in 2025.
Can ETH Reclaim $4,000?
As of March 6, ETH is trading near $2,291, testing a critical support zone at the 200-week EMA ($2,294) and the lower trendline of a symmetrical triangle. A successful bounce from this confluence could propel ETH toward key Fibonacci retracement levels, starting with $2,518 (0.382 Fib). A breakout beyond $3,000 (0.5 Fib) and $3,420 (0.618 Fib) would strengthen ETH’s case for a move toward $4,063 (0.786 Fib), aligning with the triangle’s upper boundary.
However, failure to hold the current support could invalidate the bullish setup, exposing ETH to a potential decline toward $1,050.
Also Read: Ethereum Poised for Bullish Reversal: Can ETH Break $2,400 and Rally to $3,000?
For now, Ethereum’s on-chain data, technical structure, and accumulation trends suggest that a major reversal could be on the horizon.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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