Bitcoin, Ethereum, Crypto News and Price Indices
Ethereum hit the oversold zone, with the MVRV Z-Score returning 0.42 points – although analysts are divided on whether the price of Ether is close to bottoming out.
The MVRV Z-Score is a metric used to assess whether a crypto asset is overvalued or undervalued, reflecting the total value of Ether at its last traded price.
The measure was created to identify market euphoria, or periods of capital, when market value is significantly higher or lower than realized value.
João Wedson, an analyst at CryptoQuant and founder and CEO of AlphaRectal, said the result “shows that Ethereum is in a clear phase of adoption.”
However, the analyst said the data “doesn't compare to the intensity” seen in the major stages of bear markets in 2018 and 2022.
The lowest value in history was -0.76, recorded in December 2018, Wedson said.
There may be additional downsides to ETH prices.
The analyst warned that further downside is likely before any meaningful recovery.
“The market is already under pressure, but historically, there is still room for further volatility before a real structural bottom is formed,” he said.
Ether's price has fallen 30% over the past two weeks, hitting a bear market low of $1,825 to $2,100 on Monday before a minor recovery on Friday.
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Tim Sun, senior researcher at Hashkey Group, told Cointelegraph that historically, Ethereum's MVRV Z-Score has “proven to be a very reliable indicator for tracking future market shifts, especially identifying bottom zones over multiple cycles.”
“Judging by chain activity, protocol evolution, and long-term ecosystem structure, Ethereum's fundamentals have not seen any significant deterioration. On the contrary, they have continued to improve in several key dimensions,” he said.
However, as long as the main drivers of the current decline are in place, it is premature to conclude that Ether has finished its downward spiral, he said.
“Given the potential liquidity constraints associated with the upcoming April tax season, the possibility of further rate cuts remains significant.
One of the best “buy fear” windows for ether
Other market analysts, such as MN Fund founder Michael van de Pop, were a little more optimistic, saying, “I think this is a great opportunity to look at ETH.”
Referring to the MVRV ratio, “The main reason for this is that there is a huge gap in ‘fair value'.
Ether is currently at a low after the April 2025 crash, the June 2022 Terra/Luna crash, the March 2020 Covid crash, and the December 2018 bear market low.
“On all of those occasions, this presents a great buying opportunity for this unique property.”
Andri Fauzan Adziima, head of research at crypto trading platform Bitrue, told Cointelegraph that negative MVRV zones “have frequently preceded explosive recoveries in previous cycles.”
“With ETH network metrics holding strong, it looks like it's setting up as a major long-term stock once the weak hands are completely washed away,” he said.
“Cruel statement now, but one of the best ‘buy the fear' windows for ETH in history.”
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