Ethereum’s MVRV Z-Score has fallen to the lowest level in 17 months, the main indicator of whether the primitive token, Ether (Ether), has been overestimated or evaluated, indicates that the second largest cryptocurrency may be the bottom.
Ether Lee’s MVRV Z-Score is close to the accumulation area.
The MVRV Z-Score, which compares the Ethereum’s market value with the realization value, is now close to the green zone related to the past. This metric suggests that ETH can be traded at a discounted price compared to total capital inflow to the network.
ETH MVRV Z-Score Performance Chart. Source: Glass Node
The last low level of MVRV Z-Score was just before the rebound in October 2023, and ETH rebounded almost 160%for $ 4,000 next month. Similarly, the score fell to the green area in December 2022 and March 2020.
In addition, according to encryption data, the inflow of daily ETH to the accumulation address has surged to the highest level in a few years, surpassing the previous accumulation stage before the main bull runs.
ETH is introduced into the accumulation address. Source: cryptoquant
This suggests that institutional investors and long-term holders actively accumulate ETH, while the MVRV Z-Score is undervalued. Ether Lee’s onchain data tracking whale address also reverberates.
In particular, Etherum Whales between 1,000 and 10,000 ETH have been actively accumulated since July 2024, when the ETF lived in the United States for the first time in the United States since July 2024.
Ether Lee Rai Whale Pure position change (1K-10K eth). Source: Glass Node
Most of the trend of accumulation trends coincides with Ether’s price tag, indicating that this whale is buying dip. In other words, large -scale investors expect ETH prices to rise in 2025.
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Can ETH prices get $ 4,000?
As of March 6, ETH is trading near $ 2,291 and tests the symmetry triangle and low trend support for 200 weeks EMA ($ 2,294).
The joining of this support is strengthening the possibility of a strong rebound at the current level. Historically, a similar joining point set a stage for a rally for the triangle of the triangle for $ 3,650 ahead of the major trend reversal.
ETH/USD weekly price chart. Source: TradingView
Ether Lee’s price behavior is back to the level after the main fibonacci, adding to a potential optimistic breakout.
The 0.382 FIB level (~ $ 2,518) is a core obstacle of the bull, and the successful recovery is open for $ 3,000 (0.5 FIB), eventually $ 3,420 (0.618 FIB) -historical resistance zone.
The brake out beyond this level must be set to ETH with a re -test of $ 4,063 (0.786 fib) near the upper limit of the triangle.
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Conversely, the decisive rest under the low trend of the triangle can invalidate the rebound settings as a whole. Instead, the price of ETH is in line with 0.0 Fibonacci Retression Line, which is risk of reducing $ 1,050.
This article does not include investment advice or recommendation. All investment and trading measures include risks, and the reader must do his own research when making a decision.