Ethereum’s MVRV ratio falling below 0.8 is widely viewed as a historical signal that the asset may be undervalued.
Ethereum briefly declined to around 2,080 dollars after a weekend sell off driven by rising tensions in the Middle East. Despite this pressure, the asset rebounded on Monday with a 5 percent gain, pushing its price to about 2,140 dollars after United States President Donald Trump described recent discussions with Iran as very good and productive.
At the same time, new data suggests that Ethereum may now be entering a strong accumulation phase.
Growing Case for Accumulation
According to recent analysis by crypto expert Ali Martinez, Ethereum is approaching a crucial accumulation range between 2,000 dollars and 1,800 dollars. This zone is supported by a combination of technical patterns and on chain indicators. He explained that Ethereum continues to trade within a clearly defined ascending triangle on the weekly chart, which often signals a buildup before a larger move.
This price action aligns with a notable shift in on chain data, particularly the MVRV ratio dropping below 0.8. Historically, this level has been linked to periods when Ethereum is considered undervalued, and similar conditions in the past have often come before strong market rallies. The overlap between price support and this on chain reset adds weight to the argument that this is a favorable accumulation zone.
In terms of momentum, Ethereum is beginning to show early signs of a possible trend reversal. The Supertrend indicator on the daily chart has turned positive for the first time since May of the previous year, suggesting that the extended period of consolidation could be nearing its end.
As Ethereum attempts to recover, several key resistance levels have emerged based on MVRV pricing bands. The first major barrier stands at 2,356 dollars. If the price moves beyond this level, it could pave the way toward intermediate targets at 2,647 dollars and 3,639 dollars. Further upward movement could then lead to higher expansion zones at 4,632 dollars and 5,624 dollars.
Support Structure Around 1,800 Dollars
Martinez also noted that a sustained move above 2,356 dollars would signal a shift out of the current accumulation phase. A return to the previous all time high region near 4,900 dollars could then confirm a broader structural breakout.
Until such developments occur, the range between 2,000 dollars and 1,800 dollars remains the primary focus for investors. Within this range, the 1,800 dollar level is expected to act as a strong support floor that reinforces the ongoing accumulation outlook.
Separate data also indicates that Ethereum’s Sharpe ratio is pointing toward the possibility that the market may be forming a local bottom.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
