6-3-2025 – Ethereum’s valuation metrics have reached levels not seen since late 2023, potentially signalling an opportune moment for investment in the world’s second-largest cryptocurrency.
The MVRV Z-Score, a sophisticated indicator that contrasts Ethereum’s market valuation against its realised value, has descended to its lowest point in nearly a year and a half. This metric, widely respected amongst cryptocurrency analysts, is approaching what traders term the ‘green zone’—historically associated with periods of significant undervaluation before substantial price recoveries.
This technical development echoes similar patterns observed in previous market cycles. When the score last plummeted to comparable depths in October 2023, it preceded a remarkable 160% price surge that propelled Ether towards the $4,000 threshold. Analogous situations in December 2022 and March 2020 similarly heralded the commencement of extraordinary bullish trajectories.
Industry platform CryptoQuant has documented a notable increase in daily Ether inflows to accumulation addresses, reaching multi-year highs that surpass previous collection phases that occurred before major market advances. This trend suggests institutional investors and committed holders are strategically acquiring Ether whilst its valuation metrics indicate undervaluation.
Blockchain analysis reveals particularly aggressive accumulation amongst substantial investors—known colloquially as ‘whales’—holding between 1,000 and 10,000 ETH. This accumulation strategy has intensified since July 2024, coinciding with the watershed launch of Ether-specific spot exchange-traded funds in the American market. The pattern of acquisition has largely overlapped with Ether’s downward price movement, suggesting these substantial stakeholders are deliberately purchasing during market weakness with expectations of price appreciation in 2025.
Currently trading near $2,291, Ether is testing critical technical supports, including the lower boundary of a symmetrical triangle pattern and the 200-week exponential moving average. This confluence of support mechanisms strengthens the possibility of a substantial rebound from current levels. Historically, similar technical formations have preceded significant trend reversals, potentially establishing conditions for a rally towards the triangle’s upper boundary around $3,650.
The cryptocurrency’s price action demonstrates alignment with key Fibonacci retracement levels, adding further technical validity to a potential bullish breakout scenario. The 0.382 Fibonacci level (approximately $2,518) represents an immediate challenge for buyers, with successful reclamation potentially opening pathways towards $3,000 and eventually $3,420—a zone of historical price resistance.
Should Ether surmount these obstacles, technical projections suggest a potential retest of the $4,063 level near the upper boundary of the prevailing triangle pattern. Conversely, a decisive breakdown below current support structures could invalidate the rebound thesis altogether, potentially exposing Ether to further declines towards the psychologically significant $1,050 threshold.
