Ethereum Drops 18.21% In 30 Days, MVRV Signals Buying Opportunity

Ethereum has experienced a significant decline over the past four months, trading in a multi-month descending triangle. As of the latest reports, Ethereum was hovering around $1610, marking an 18.21% drop over the last 30 days. This downward trend has led to a drop in Ethereum’s Market Value to Realized Value (MVRV) score, which has settled at 0.77. Historically, such a drop has signaled a buying opportunity, as the altcoin is considered oversold.

According to crypto analyst Burak Kesmeci, Ethereum’s MVRV dropping below 1 indicates that the altcoin is currently oversold. This has historically been a good time for investors to buy Ethereum. Ali Martinez, another analyst, noted that the best buying opportunities for ETH have occurred when the price dips below the lower MVRV Price Band, which is the current situation. This suggests that investors may have a strategic chance to accumulate Ethereum at a discount.

Despite the decline, there are signs that Ethereum buyers are returning to the market. Large holders, or whales, have stopped selling the altcoin, as indicated by the Large Holders’ Netflow to Exchange Netflow Ratio declining for the past seven days, hitting -0.71. This negative territory suggests that whales are not transferring their Ethereum into exchanges but are instead withdrawing, which is a bullish sign.

Additionally, Ethereum’s Taker buy-sell ratio has remained above 1 for two consecutive days, reflecting strong buying pressure in the market. This trend signals rising demand across all market participants. Furthermore, Ethereum’s Exchange Supply Ratio has declined sustainably over the past four days, hitting 0.135. A sustained drop in this metric points to market participants—both retail and institutional—pulling ETH off exchanges, typically a sign of growing confidence and reduced sell pressure.

With the MVRV dipping into oversold territory, investors have interpreted it as a buying opportunity. Buyers are now strongly back in the market to accumulate Ethereum. However, the MVRV score may not remain below 1 for a long time, and Ethereum could rebound. A rebound on Ethereum price charts could see the altcoin attempt a move towards $1706. However, if the MVRV continues to stay below 1, Ethereum could drop to $1551 before starting another upward movement.