Ethereum's MVRV Z-Score Indicates Potential Bottoming Out
#Market analysis
#Ethereum - ETH
Ethereum's MVRV Z-Score Indicates Potential Bottoming Out
Ethereum's MVRV Z-Score, a crucial indicator for evaluating the valuation of its native token, Ether, has reached its lowest point in 17 months, suggesting that the cryptocurrency may be approaching a bottom. The MVRV Z-Score compares Ethereum's market value to its realized value and is currently nearing the undervaluation zone, indicating that ETH could be trading at a discount compared to the total capital inflow. Historical data shows that similar low levels of the MVRV Z-Score in the past have preceded significant price rebounds for ETH. Institutional investors and long-term holders are accumulating ETH aggressively, as evidenced by increased inflows into accumulation addresses. This accumulation trend aligns with price pullbacks, suggesting that large investors anticipate a price increase in 2025. Ethereum's price action is supported by key Fibonacci retracement levels, with potential bullish breakout targets at $3,000 and $4,063. However, a break below key support levels could invalidate the bullish setup.
