Ethereum Surges Nearly 10% As MVRV Ratio Drops Below 1—Bigger Rally Incoming?
Ethereum’s price reflects recent market changes in Bitcoin. ETH experienced roller coaster performance earlier this week and then rebounded 10% in the past 24 hours. This recovery is after the broader market correction that initially leads to investors’ fear.
although Performance of Ethereum Recent on-chain data suggest that ETH may enter a new accumulation phase.
MVRV ratio and institutional accumulation trend
one postal The contributor known as MAC uploaded to the crypto QuickTake platform, specifically pointing out the market value of Ethereum to the realized value (MVRV) ratio, which suggests that the asset is currently undervalued.
Latest data suggests that large investors are increasing their ETH holdings and signaling potential Support for key price levels. According to MAC, these accumulation patterns may affect the trajectory of Ethereum in the coming weeks.
MAC revealed that the MVRV ratio is a key chain metric used to evaluate whether an asset is overvalued or undervalued, reducing 1 to Ethereum by 1. Historically, such a level indicates an undervalued area, which means Ethereum is approaching the average purchase price for all holders, including institutional investors.
ETH MVRV: A highly underestimated area
“When the MVRV is below 1, it marks entry into the undervalued area in the cycle, indicating an opportunity to buy at an average purchase price close to all holders, including whale investors.” – By @mac_d46035 pic.twitter.com/urj348tzng
– cryptoquant.com (@cryptoquant_com) March 5, 2025
The analyst also mentioned that in the past market cycle, when Ethereum’s MVRV dropped below 1, it was followed by excellent price recovery. Furthermore, the number of ETH cumulative addresses has surged, i.e. WALLETERS that receive ETH but never withdrawn.
This shows that large investors and institutions are strategically increasing their holdings, especially at present Price range $2,200 – $2,300whale investors achieve price concentration. This level is expected to act as a strong support zone, thereby enhancing the possibility of continuous accumulation.
Market conditions and long-term Ethereum prospects
Beyond the accumulation trend, Macroeconomic factors Continue to play a role in shaping Ethereum’s price movements. The MAC notes that U.S. liquidity policies, especially the Trump administration’s trade and monetary policies, have so far affected risk asset performance, including cryptocurrencies.
Stricter monetary policy and inflation problems may lead toPrice drops. “Mac concluded that despite this possibility, it points out:
However, Ethereum still maintains its position as the second largest cryptocurrency in market capitalization and is a proven network of thousands of mature Defi projects. Therefore, institutional investors may accumulate more in this undervalued area. Therefore, from a long-term perspective, the outlook for Ethereum remains positive.
Feature images created with DALL-E, charts for TradingView
