Ethereum declined further on Thursday during a broader market pullback, losing nearly 5 percent and falling toward the 2,100 level.
Recent on chain data suggests the asset may now be entering a historically important accumulation phase, with past trends showing strong upside following similar conditions.
MVRV points to undervaluation
According to Ali Martinez, Ethereum has moved into what he describes as a generational buying zone. This view is based on the MVRV Ratio, which compares market value to the average cost basis of investors.
The metric has dropped into the 0.8 to 1.0 range, signaling that Ethereum is trading near fair value. Historically, this range has often marked the beginning of strong upward cycles.
Previous occurrences of similar levels were followed by gains of 150 percent, 5,390 percent, 130 percent, 280 percent, and 250 percent. Current data suggests that Ethereum could be approaching a long term bottom, as accumulation activity increases across the network.
Another trader, EliZ, noted that recent conditions provided short term opportunities for traders who entered at lower levels and took profits during altcoin rallies. However, the market is now entering a more decisive phase shaped by key technical levels.
As long as Ethereum remains within the 2,050 to 2,180 range on the daily chart, the medium term upward trend is expected to hold. A drop below 2,000 would invalidate this structure and could shift sentiment toward a more bearish outlook.
If that level fails, it could trigger a deeper decline and create conditions favorable for aggressive short positions.
Institutional flows turn negative
On the institutional side, US spot Ethereum exchange traded products recorded outflows of about 55.7 million dollars on March 18, ending a five day streak of inflows.
Fidelity saw the largest withdrawals through its Ethereum product, with around 37.11 million dollars exiting the fund. Grayscale followed with nearly 9 million dollars in outflows.
Funds from VanEck and Bitwise also recorded losses of approximately 4.8 million dollars each, reflecting broader macroeconomic pressure on digital asset investment products.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
