Ethereum's MVRV Z-Score Dips Below 1, Signaling Undervaluation and Potential Price Growth
1min read Ethereum's Market Value to Realized Value (MVRV) Z-Score has dipped below the neutral zone, indicating that the price of ETH is trading below its intrinsic worth. This has led to a significant accumulation of ETH by investors who are looking to hold the cryptocurrency for the long term. The MVRV Z-Score below 1 suggests that ETH is undervalued, which could attract institutional and smart money participants, potentially triggering price growth.
Despite a continued drop in the price of ETH, a whale account that had been dormant for 2.8 years recently woke up to purchase 3,659.83 ETH for $5.88 million. This large-scale movement of ETH through the TornadoCash network hints that more investors could be preparing to buy, indicating optimistic market conditions. However, the potential for a sell-off looms as Galaxy Digital deposited 12,500 ETH to Binance, accounting for a total of 62,181 ETH. Such inflows often precede sell pressure, especially during uncertain price conditions, implying heightened risk of a breakdown if demand falters.
The price of ETH declined by 45.3% during the first quarter of 2025, reaching levels below $2,000, last seen in mid-2023. ETH is currently hovering near $1,580, stuck between $1,612.59 resistance and $1,566.14 support. This narrow trading range often precedes volatile breakouts or sharp liquidations. A confirmed break above $1,620 could signal bullish revival, while staying beneath $1,566.14 would result in downward pressure that could push the market below $1,540 and potentially even toward $1,500 if sell-side momentum rises.
The reentry of the whale account also suggests confidence in a medium-term rebound. Ethereum thus stands at a crossroads—between renewed accumulation and looming distribution. The sustained low MVRV reading might indicate price undervaluation, which could invite institutional and smart money participants and trigger price growth. However, an extended stay within this zone corresponds to lowered conviction from holders or rising market unpredictability evidence. The Z-Score exceeding 1 level may initiate new bullish price action, but declining values may lead ETH to near its previous cycle bottom. The data showed potential for upcoming buying behavior or continued price declines.
