Ethereum currently shows a 20% MVRV delta, suggesting a potential undervaluation compared to its true worth. Analysts view this technical discrepancy during a crypto market consolidation as a potential bullish signal. Could the quiet shift from trading to ETH accumulation trigger the next major rally?
On-chain data reveals a notable shift in dynamics on the Ethereum network. Trading volumes on centralized exchanges have gradually decreased over recent weeks, while net withdrawals of ETH to private wallets have steadily increased. This rotation from active trading to long-term accumulation constitutes a classic pattern observed before price discovery phases.
Accumulation metrics also show that addresses holding between 100 and 10,000 ETH have significantly increased their positions since the beginning of the quarter. These institutional investors and crypto whales typically don’t react to short-term speculative movements but position their capital in anticipation of fundamental catalysts in the medium term.
The MVRV gap of 20% fits into this context of silent accumulation. Historically, periods when Ethereum has displayed similar MVRV ratios have preceded substantial rallies of 40% to 80% in the following 3 to 6 months. The market currently seems to underestimate the intrinsic value of the network, despite continuous developments in the Ethereum ecosystem.
Beyond MVRV, several technical indicators converge toward a potentially bullish scenario for ETH. The RSI (Relative Strength Index) on the weekly timeframe maintains a neutral zone around 50, leaving comfortable room for growth before reaching overbought levels. Bollinger Bands are also beginning to tighten, a signal that often precedes increased volatility movements.
The price structure of Ethereum is progressively building a solid support base in the $1,800 to $2,000 zone. Trading volumes at these price levels have increased, creating what traders call a “value area” where accumulation dominates distribution. This prolonged consolidation could serve as a springboard for a breakout toward the major resistance located around $2,400.
Liquidation levels on exchanges also show a favorable asymmetry: Short positions concentrate more liquidity than long positions in upper price zones. A bullish movement could therefore trigger a cascade of short liquidations, mechanically amplifying the rise via a short squeeze effect.
ETH currently presents a buying opportunity in the context of this silent accumulation. Investors can consider progressive entries to benefit from bullish potential in the medium term. Exclusive Bitget cashback included!
On the same topic:
Passionate about cryptocurrencies since 2019, I cover the latest news through clear and accessible articles. My goal is to make crypto understandable for everyone, with reliable and well-researched content.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
