TLDR
Ethereum’s MVRV-Z score suggests the cryptocurrency is undervalued at current prices, similar to October 2023 before a 160% rally
Ethereum whales have accumulated 1.1 million ETH in the past 48 hours despite recent price dips
World Liberty Financial recently purchased $10 million worth of Ethereum (4,468 ETH)
ETH sentiment has dropped to its lowest levels of the year according to Santiment
Technical analysts remain bullish on ETH despite the recent price decline, with support expected around $2,200
The second-largest cryptocurrency by market capitalization is showing signs of a potential price surge despite recent market volatility. Data from multiple analytics platforms suggests that Ethereum (ETH) may be preparing for an upward move as large investors accumulate coins and technical indicators point to undervalued conditions.
Ethereum’s MVRV-Z score has dropped to its lowest level in 17 months. This key on-chain indicator, which compares market value to realized value, is now in a range that has historically preceded price rallies.
The last time ETH’s MVRV-Z score reached similar levels was in October 2023. Following that reading, Ethereum experienced a 160% price increase in subsequent months.
Similar MVRV-Z readings were also observed in December 2022 and March 2020. Both instances were followed by strong bullish phases for the cryptocurrency.
While the broader market faces pressure, whale activity tells a different story. Crypto analyst Ali Martinez reports that Ethereum whales have purchased 1.1 million ETH within just 48 hours.
As long as #Ethereum $ETH stays above $2,200, the odds of a rebound increase, especially with the TD Sequential flashing a buy signal on the weekly chart in the form of an A13! pic.twitter.com/UmowxKOV9R
— Ali (@ali_charts) March 6, 2025
This buying happened amid a market decline that saw ETH drop about 6% following President Trump’s executive order regarding the US strategic reserve. The buying suggests large investors may be positioning for a reversal.
Technical Analysis
Institutional interest continues to flow into Ethereum. World Liberty Financial recently purchased $10 million worth of ETH, acquiring 4,468 coins at approximately $2,238 each.
Data from CryptoQuant reveals that ETH inflows into accumulation addresses have reached multi-year highs. These levels exceed those seen before previous major bull runs.
These high inflows typically indicate that institutional investors and large holders expect Ethereum’s price to rise. Some analysts have made bold predictions, suggesting ETH could potentially reach $9,000 this year.
The weekly Relative Strength Index (RSI) for Ethereum has fallen to a three-year low. While this indicates oversold conditions, many traders view it as a positive sign that precedes recovery.
Martinez notes that as long as Ethereum maintains support above $2,200, the chances of a rebound increase. Currently, ETH trades around $2,170, with a market capitalization of $261 billion.
On-chain analytics firm Santiment reports that Ethereum sentiment has dropped to its lowest levels of 2024. This extreme negative sentiment often functions as a contrarian indicator.
According to market psychology, maximum pessimism frequently coincides with price bottoms. This makes the current situation potentially attractive for long-term investors.
There are some challenges to Ethereum’s upward momentum. Increasing ETH reserves on exchanges could create selling pressure in the short term.
Some market observers have expressed concern about the Ethereum Foundation’s continuous selling of ETH. This selling may be contributing to price suppression.
Technically, analysts remain optimistic. One analyst, “Titan of Crypto,” points out that Ethereum continues to move within a broadening wedge pattern, which is considered a bullish setup.
The cryptocurrency has also revisited what traders call the “Reload Zone.” This is a key price area where professional traders often look to start long positions or add to existing ones.
Despite the mixed signals, whale accumulation patterns suggest smart money is betting on Ethereum’s recovery. The recent 24-hour trading saw $71 million in liquidations, with $52.96 million coming from long positions being closed.
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