Ethereum data supports ETH price recovery

Since falling below the $1,800 mark on February 6, Ethereum (ETH) price has risen 18%, renewing the $2,000 support level. Increasing price volatility and low MVRV Z-score values ​​also indicate bottom formation in the area.

Main Receptors:

Ethereum's volatility on Binance rose to its highest level since March 2025, hinting at a possible recovery.

Ether's MVRV Z-Score has fallen into the accumulation zone, suggesting that ETH has bottomed out.

Ether's multi-year trend line around $1,800-$1,900 holds as support.

Ethereum volatility has reached a 12-month high

Ethereum volatility has seen a sudden spike, indicating that the market is entering a period of high activity and strong volatility, according to data from CryptoQuant.

Volatility is a measure used to determine how much and how quickly the price of Ether changes over a period of time.

Related: ETH options turn bullish as traders discount Ether price for extended run

The chart below shows that the perceived volatility (30-day) indicator on Binance rose sharply to 0.97 in mid-January from 0.37 on Thursday.

The increase in volatility to such high levels indicates that the market has moved out of relative stability and into a highly volatile environment, CryptoQuant analyst Arab Chain said in a Quicktake analysis.

“Past experience shows that such readings are often preceded by a significant upward movement in the price of Ethereum.”

The exchange's last peak was between late March and early April 2025, when the price of ETH formed a lower range between $1,500 and $1,700.

After that, the ETH/USD pair rallied 77% to $2,700 in less than 30 days. A similar increase in Q4/2024 preceded a 74% rally in Ether's price.

If history repeats itself, this surge in momentum could signal the end of the bearish streak, which could set ETH up for a multi-month rally as volatility settles and conviction strengthens.

The MVRV Z-Score suggests that Ether is below $1,800

Ether's MVRV Z-Score, one of the most popular on-chain metrics used to identify market tops and bottoms, has fallen into the historical accumulation zone (the green line in the chart below), strengthening the argument that ETH may find a bottom.

The last time Ether's MVRV Z-Score reached its current level of around -0.31 was in April 2025, after a 66% price drop. This coincided with a price low of $1,400 and preceded a multi-month rally in which the price of ETH rose 258% to $4,950.

This suggests that from an onchain perspective, Ether is oversold and may continue its sustained recovery, which may grow to liquidity pools between $2,200 and $2,500 in the short term.

Ether 2020 Fractal Projects “Explosive Climb” For ETH Price

The current Ether technical structure closely mirrors the composition that triggered the 2020-2021 price rally.

The monthly chart below suggests that the price is currently holding a multi-year trend line, as it supported the price between December 2018 and April 2020.

In the year As seen in 2020, “every time the price breaks above this rising support line, it will begin a parabolic rally,” analyst trader Tardigrade said in an X post on Thursday:

Now $ETH is retesting the trend line. If it continues here, history says we are getting ready for another eruption.

This trendline lies within the $1,900 and $1,800 support zone, where investors recently acquired 2.9 million ETH, Glassnode's cost base distribution heatmap shows.

According to Cointelegraph, ETH may continue to recover to retest the 50-day simple moving average (SMA) at $2,540 if the bulls break above $2,100.