Ethereum’s MVRV-Z Score Suggests Current Undervaluation at $2,268

Ethereum (ETH) may be undervalued, according to the MVRV-Z score, which indicates a low valuation not seen in 17 months. The last occurrence of such undervaluation in October 2023 preceded a 160% price increase.

Key Insights

The current MVRV-Z score suggests ETH could be approaching a local bottom.
Previous similar levels in December 2022 and March 2020 led to bullish phases for ETH.
Crypto whales are accumulating ETH, with inflows into accumulation addresses at multi-year highs.
Institutional investors expect price rises, aligning with predictions of ETH reaching $9,000 this year.
Whales holding 1,000 to 10,000 ETH have increased their positions since July 2024, following recent ETF approvals.

Market Outlook

Despite bearish sentiment, several indicators suggest potential for a surprise rally.
ETH’s weekly Relative Strength Index (RSI) is at a three-year low, raising optimism for recovery.
Increasing reserves on exchanges might hinder upward momentum.
Ongoing sales by the Ethereum Foundation may suppress prices.
As of now, ETH trades at $2,268, up 3.7% in the last 24 hours.