On-chain data suggests Ethereum may be forming a market bottom near $1,800-$2,000, as its MVRV ratio hits a historically low 0.78. However, persistent selling from ETFs and whales, alongside weak technicals, presents a significant challenge for bulls attempting to capitalize on potential undervaluation signals.
Ethereum faces mounting pressure from macroeconomic uncertainty and geopolitical tensions, testing key market levels. The asset has closed each weekly candle lower since mid-January, establishing a clear bearish trend.
On-chain metrics offer a conflicting narrative for a potential price floor. Historically, an MVRV ratio below 0.80 has signaled a bottom, and Ethereum’s current reading of 0.78 suggests it may be undervalued.
This view is supported by analyst Tom Lee‘s thesis, which points to six on-chain indicators that have historically aligned with significant market rebounds. These signals collectively suggest a bottom could be forming in the $1,800 to $2,000 range.
Concurrently, supply-side dynamics show some bullish signs as a record 37.1 million ETH is now staked. Exchange reserves have also dropped to a two-week low of 16 million coins following significant withdrawals.
Despite this, substantial selling pressure undermines the positive supply data. Ethereum ETFs have offloaded over 563,600 ETH in the past five weeks.
A single whale recently sold $47.77 million worth of ETH, adding to the outflow. This persistent selling, combined with weak technicals, makes confirming a bottom difficult currently.
