Ethereum Surges 10% as Investors Accumulate in Undervalued Zone

Ethereum's price surged by nearly 10% in the past 24 hours, mirroring Bitcoin's recent market movements. This rebound follows a broader market correction that initially sparked fear among investors. While Ethereum's performance remains closely linked to Bitcoin's price action, recent on-chain data suggests that ETH may enter a renewed accumulation phase.

The Market Value to Realized Value (MVRV) ratio for Ethereum has dropped below 1, indicating that the asset is currently undervalued. This metric, used to assess whether an asset is overvalued or undervalued, suggests that Ethereum is trading close to the average purchase price of all holders, including institutional investors. Historically, such levels indicate an undervalued zone, signaling an opportunity to buy at a level close to the average purchase price of all holders.

Large-scale investors are increasing their ETH holdings, signaling potential support at key price levels. This accumulation trend is reflected in the surge in the number of ETH accumulation addresses—wallets that receive ETH but have never withdrawn. This suggests that large investors and institutions are strategically increasing their holdings, particularly at the current price range of $2,200–$2,300, where the realized price for whale investors is concentrated. This level is expected to act as a strong support zone, reinforcing the possibility of sustained accumulation.

Beyond accumulation trends, macroeconomic factors continue to play a role in shaping Ethereum's price movements. Stricter monetary policies and inflation concerns could contribute to "sharp price drops." Despite this possibility, Ethereum still maintains its position as the second-largest cryptocurrency by market cap and is a proven network with thousands of mature DeFi projects. As such, institutional investors are likely to accumulate more in this undervalued zone. Therefore, from a long-term perspective, the outlook for Ethereum remains positive.