Ethereum rallied to around $2,140 after geopolitical tensions initially drove its price toward $2,080. Analysts report the asset is now in a potential accumulation zone, with its MVRV ratio signaling historical undervaluation and technical indicators hinting at a trend reversal.
Ethereum’s price dropped to around $2,080 over the weekend amid rising tensions in the Middle East. It then gained 5% on Monday, pushing its price to $2,140 after former President Donald Trump described recent talks with Iran as “very good and productive.”
Analyst Ali Martinez stated that ETH remains inside a well-defined ascending triangle on the weekly chart. Fresh data suggests the crypto asset is in a prime accumulation zone between $2,000 and $1,800.
This price behavior coincided with Ethereum’s MVRV ratio dropping below 0.8. That level is historically associated with periods when the asset is considered undervalued and has previously preceded major market upcycles.
On the momentum front, the Supertrend indicator on Ethereum’s daily chart flipped bullish for the first time since May last year. This indicates the long consolidation phase may be nearing its end.
As ETH attempts recovery, crucial resistance levels have been identified starting with $2,356. A move beyond this could open the path toward intermediate targets at $2,647 and $3,639.
Martinez observed that a sustained breakout above $2,356 would mean a transition out of the current accumulation phase. A separate finding shows that Ethereum’s Sharpe ratio points to a possible local bottom.
