Ethereum's MVRV Z-Score metric has reached its lowest level in the last 17 months, which may indicate a crypto bottom.
MVRV Z-Score Significance for Ethereum
The MVRV Z-Score metric allows comparison between Ethereum's market value and realized value. Currently, its value is close to the green zone, historically associated with undervaluation. This could mean that ETH is trading at a discount relative to the total capital inflow to the network.
Strategies of Major Investors
CryptoQuant data shows that daily ETH inflows into accumulation addresses have reached their highest in years. This suggests that institutional investors and long-term holders are aggressively accumulating ETH at its low MVRV Z-Score levels. Large addresses holding between 1,000 to 10,000 ETH have also increased their accumulations since July 2024, when the first US spot exchange-traded funds launched.
ETH Price Prospects
As of March 6, ETH trades around $2,291. Technical indicators show a potential for strong rebound from current levels, including reaching the upper trendline of the symmetrical triangle at about $3,650. Overcoming key Fibonacci levels may also push Ether to new highs around $4,063.
Ethereum shows signs of recovery due to low MVRV Z-Score levels and increased interest from major players. However, both upward trends and risk of decline are possible.
