TLDR
- Ethereum's MVRV-Z score hints the digital currency is trading below its worth, echoing events right before a 160% surge in October 2023.
- Despite the market's shaky performance, Ethereum's whales have been busy gathering 1.1 million ETH over the last two days.
- World Liberty Financial made a hefty purchase of Ethereum, acquiring nearly 4,500 ETH for $10 million.
- According to Santiment, the vibe around Ethereum hasn't been this low all year.
- Analysts are staying bullish on Ethereum, believing support around the $2,200 mark will hold even after recent price drops.
Though the market's been wobbly, Ethereum is signaling a promising uptick as substantial investors stock up and technical metrics scream 'undervalued.'
Ethereum's MVRV-Z score is at its lowest in 17 months, dipping into a territory that has often led to price hikes in the past.
When last Ethereum's MVRV-Z score reached such a position in October 2023, a subsequent price jump of 160% followed.
Similar readings were recorded back in December 2022 and March 2020, both sparking strong bullish momentum for Ethereum.
Amid a market squeeze, whale activities paint a different picture. Speculative bloggers like Ali Martinez reveal a 1.1 million ETH buy by whales within 48 hours.
As long as #Ethereum $ETH Staying above the $2,200 level could boost the odds of a bounce-back, especially with the TD Sequential indicator showing a buying opportunity on the weekly chart. pic.twitter.com/UmowxKOV9R
— Ali (@ali_charts) March 6, 2025
All this buying took place while ETH fell by around 6% after President Trump’s executive order on the US strategic reserve was announced, hinting big investors are expecting a reversal.
Technical Analysis
Institutional attention towards Ethereum is unwavering, with World Liberty Financial recently splurging $10 million on ETH, buying 4,468 coins at about $2,238 a piece.
Data from CryptoQuant Reports reveal inflows into Ethereum accumulation addresses hit the highest levels in years, topping figures seen before previous big price hikes.
Such massive inflows often indicate major players and institutions anticipate a price spike. Ethereum’s Some experts are boldly forecasting Ethereum could soar to $9,000 within this year.
Ethereum's Relative Strength Index on the weekly charts has dropped to a three-year trough, a move many in the trading circles interpret as a promising precursor to recovery.
Martinez notes that as long as Ethereum Holding onto the $2,200 support level improves the odds of Ethereum bouncing back. Currently, it's trading around $2,170 with a massive market value of $261 billion.
Data from Santiment shows Ethereum sentiment at its lowest since early 2024, often serving as a contrarian sign.
In times of extreme negativity, which often mark market bottoms, many see an opening for long-term investments.
Ethereum’s ascent isn't without hurdles. Rising ETH reserves on exchanges might apply shorter-term selling pressures.
The ongoing Ethereum Foundation sales have raised eyebrows, as some suspect this could be keeping prices lower.
Analysts remain generally optimistic. One, known as 'Titan of Crypto,' mentions Ethereum is still moving within a broadening wedge, a typically bullish signal.
Ethereum also revisits what's known in trading circles as the 'Reload Zone.' This is often seen as a prime entry point for seasoned traders looking to go long or expand positions.
Though signals appear mixed, whale accumulation suggests that the smart money is still betting on Ethereum bouncing back. Recent trading periods saw $71 million in liquidations, with $52.96 million originating from closed long positions.
