- Ethereum’s MVRV indicator signaled that the price was significantly undervalued, trading at levels not seen since 2023.
- After a 2.8-year hiatus, a large investor purchased 3,659.83 ETH for $5.88M DAI amidst a prolonged market decline.
Ethereum’s MVRV Z-Score dropped below 0 into the accumulation zone, reminiscent of market conditions in late 2020 and 2023.
During Q1 2025, ETH price plummeted by -45.3%, reaching levels below $2000 last witnessed in mid-2023.
MVRV Z-Scores below 1 indicated that ETH was trading below its intrinsic value, prompting long-term investment from traders.
A sustained low MVRV reading could suggest undervaluation, attracting institutional investors and driving price appreciation.
Source: Glassnode
Extended time spent in this zone could indicate waning holder confidence or increasing market volatility.
A Z-Score surpassing 1 level might trigger bullish price action, while declining values could bring ETH closer to its previous cycle low.
The data suggested potential for upcoming buying activity or further price declines.
How low could ETH drop to initiate a turnaround?
ETH remained near $1,580, oscillating between $1,612.59 resistance and $1,566.14 support. The price stayed within this narrow range for 48 hours, reflecting market indecision.
Such tight trading often precedes volatile movements or sudden liquidations. A confirmed breakout above $1,620 could signal a bullish resurgence.
Source: TradingView
If ETH remains below $1,566.14, downward pressure could push the price below $1,540 and potentially towards $1,500 if selling pressure intensifies.
Trading volume remained low as market participants anticipated a potential trend reversal. Increased volume at the boundaries of this trading range would confirm a breakout.
Whale activity complicates the picture
Meanwhile, a previously dormant whale account reemerged after 2.8 years to acquire 3,659.83 ETH worth $5.88 million—indicating optimism in the market.
Significant movement of these ETH through the TornadoCash network hinted at more investors gearing up for purchases.
However, potential selling pressure loomed as Galaxy Digital deposited 12,500 ETH into Binance, totaling 62,181 ETH.
Source: OnChain Lens
Such inflows often preceded selling pressure, particularly in uncertain market conditions. This activity suggested an increased risk of breakdown if demand weakened.
Nevertheless, the reentry of the whale account indicated confidence in a medium-term recovery. Ethereum found itself at a crossroads—between renewed accumulation and potential distribution.
following sentence:
She couldn’t believe the news when she heard it.