Is the Ethereum recovery over? After reaching $2,136, the price of ETH dropped to $2,000

Ethereum (ETH) drops to $2,000 amid continued market volatility and selling pressure. Whale movements, ETF activity, and Bitcoin weakness compound the recent decline. MVRV suggests that ETH may be near historical bottoms, indicating the possibility of a recovery.

Ethereum's recent rally seems to be losing steam after the cryptocurrency hit $2,136.

The coin is now quickly falling back to the $2,000 mark, indicating a continued bearish trend over the past month.

Ethereum (ETH) is currently trading at $2,015, representing a 34.9% decline over the past month.

The sharp monthly decline is part of the broader volatility in the crypto market this year.

Trading volumes remain high, with more than $21.5 billion worth of tokens exchanged in the past 24 hours.

Market factors driving ETH price decline

Several factors are contributing to Ethereum's recent weakness.

One of the main drivers is the high volatility in the commodity and ETF markets.

Recent activity in Ethereum ETFs and Bitcoin-linked derivatives has boosted price swings.

Whaling activities have also come under pressure.

Large holders transferring ETH to exchanges can cause panic selling, and reports indicate that this has happened in recent weeks.

Bitcoin's recent weakness weighed heavily on Ethereum, given the strong correlation between the two cryptocurrencies.

Analysts are also pointing to a break of key support levels around $3,000 as a sign of further risk.

Ethereum's 7-day range from $1,824 to $2,369 shows how volatile the market has been.

But despite the low pressure, the activity of the Ethereum network remains strong.

Daily transactions and active addresses have not decreased, which shows that the use of blockchain is strong.

This suggests that even if prices are under pressure, fundamentals may still support the network.

Could the market bottom be near?

On-chain analysis provides a possible silver lining for Ethereum investors.

The Market Value (MVRV) gauge on Santiment shows that ETH is approaching historically significant levels.

The coin recently traded below the 0.80 MVRV price band, a zone historically associated with market bottoms.

This level usually shows that many investors are at a loss, which creates conditions for accumulation.

Previous price recoveries below this band followed in weeks and months.

Current readings suggest that Ethereum is undervalued relative to recent history, although a deep bottom is yet to be confirmed.

If ETH continues to hold towards $2,000 and rebounds, it could signal the start of a long-term recovery phase.

Traders and long-term owners will be watching closely for support around this level.

Ultimately, the short-term trend is slow, but on-chain indicators show that Ethereum's decline may reach a turning point.

The coming days will be crucial in determining whether ETH stabilizes or continues its descent to lower support levels.