Ethereum's Accumulation Addresses Surge, Indicating Potential Bullish Turnaround

Ethereum (ETH) has been described as ‘insanely undervalued’ by crypto trader Coinvo, who highlighted several on-chain metrics that support this assessment. Despite a lackluster price performance over the past few years, accumulation addresses continue to stack the digital asset, indicating a growing confidence in its future value.

Ethereum has risen 8% over the past two weeks but remains down 43% over the past year, trading around $1,700. This performance is in stark contrast to Bitcoin (BTC), which is trading just 13.7% below its all-time high (ATH). Ethereum’s relatively poor performance compared to other major cryptocurrencies has raised questions about its long-term outlook, especially with increasing competition from rival smart contract platforms like Solana (SOL), SUI, and Polkadot (DOT).

Despite the prevailing negative sentiment, some analysts believe ETH could be on the verge of a turnaround. Coinvo claims that Ethereum is significantly undervalued and could be poised for a massive rally. The trader shared a chart leveraging the Market Value to Realized Value (MVRV) Z-score, a metric used to identify potential market tops and bottoms. According to the chart, Ethereum’s MVRV Z-score has now entered the green zone – between 0 and -1 – a range that historically signals a market bottom and possible trend reversal.

Inflows into Ethereum accumulation addresses have surged to historic highs. Analyst CryptoGoos shared a chart showing record ETH inflows into these addresses in 2025. High inflows to accumulation addresses indicate that long-term investors are actively buying and holding ETH, even during market downturns. This behavior often reflects growing confidence in Ethereum’s future value and suggests a potential bullish sentiment building beneath the surface.

CryptoGoos also highlighted that Ethereum’s exchange reserves are at a multi-year low. Diminishing reserves on exchanges point to reduced selling pressure and a tightening supply, which could strengthen ETH’s scarcity narrative and drive prices higher in the near term.

Noted analyst Crypto Rover drew parallels between ETH’s current price action and BTC’s 2021 trajectory. According to the analyst, if Ethereum mirrors Bitcoin’s past performance, it may be on track to reach a new ATH in the coming months. However, concerns remain around further decline in ETH’s price if the global macroeconomic situation worsens. At press time, ETH trades at $1,754, down 2.1% in the past 24 hours.