Ethereum Nears Breaking Point: MVRV Z-Score Signals Possible Market Shift Ahead!

• Ethereum’s MVRV Z-Score hints at a potential market turning point.
• Analysts split over Ethereum’s bottom, despite MVRV Z-Score’s signal.
• Ethereum’s price drop could signal a major buying opportunity ahead.

Ethereum’s market could be approaching a critical turning point as its MVRV Z-Score hits -0.42, signaling a possible market shift. The MVRV Z-Score compares the market value of Ethereum with its realized value, which is the price at which each unit of Ether was last transacted. A score like this typically indicates potential for a major market change, as it can point to periods of overvaluation or significant undervaluation.

While the score suggests Ethereum is going through a capitulation phase, not all analysts are convinced the bottom is near. Joao Wedson, a CryptoQuant analyst and founder of Alphractal, noted that Ethereum is indeed undergoing a phase of market capitulation. However, he warned that the current situation doesn’t yet match the severity of past market bottoms seen in 2018 and 2022. The lowest MVRV Z-Score ever recorded was -0.76 in December 2018, signaling a massive sell-off, and experts suggest the market could still face further downside before reaching a true bottom.

Also Read: XRP Set to Revolutionize Global Finance: Ripple’s Game-Changing Plans for 2026

Ethereum’s price has fallen by 30% over the past two weeks, touching a low of $1,825 before a slight recovery to $2,100. Despite these losses, some analysts believe the MVRV Z-Score is a reliable indicator of market bottoms. Tim Sun, a senior researcher at HashKey Group, emphasized that Ethereum’s fundamentals are still strong, with key metrics such as protocol development and on-chain activity continuing to improve. He cautioned, however, that until the primary factors driving the current decline are resolved, it is too early to declare the bottom.

Potential Opportunity for Investors Amid Market Uncertainty

Amid the market uncertainty, some investors remain optimistic. Michaël van de Poppe, founder of MN Fund, sees the current conditions as an excellent buying opportunity, pointing to the gap between Ethereum’s market price and its fair value. This scenario, according to van de Poppe, mirrors past instances where Ethereum rebounded significantly after hitting lows during crises like the April 2025 crash, the June 2022 bottom after the Terra/Luna collapse, and the March 2020 Covid crash.

Moreover, Andri Fauzan Adziima, research lead at Bitrue, pointed out that Ethereum has historically experienced explosive recoveries following periods of negative MVRV scores. While the current market pain might feel intense, Adziima believes it could be an optimal time for long-term investors to accumulate Ether once the market flushes out weaker hands.

Although Ethereum’s future remains uncertain, the MVRV Z-Score’s current reading and historical market patterns suggest that the asset may be at a critical juncture. With Ethereum’s price under pressure, investors will be watching closely to see whether the bottom has already arrived or if further declines are ahead.

Also Read: Ripple CEO to XRP Holders: ‘The Message is Finally Clear’

The post Ethereum Nears Breaking Point: MVRV Z-Score Signals Possible Market Shift Ahead! appeared first on 36Crypto.