Ethereum Nears Key Support Amid Investor Caution
Key Takeaways
- Ethereum is once again approaching the MVRV buy zone at USD 1,367 – a historically significant level.
- Large investors (whales) are increasingly withdrawing ETH from exchanges, indicating long-term accumulation.
- Exchange reserves are declining, suggesting reduced selling pressure.
- Over 70% of investors are currently at a loss – a typical indicator of potential trend reversals.
Ethereum Facing Potential Trend Reversal
Ethereum (ETH) is currently approaching a technical level that has often marked a turning point in the past: the so-called MVRV buy zone around USD 1,367. MVRV stands for “Market Value to Realized Value” and helps identify overvalued or undervalued market phases. In both 2019 and 2022, this level marked the end of extended downtrends.
Technical Situation Remains Tense
Since late 2024, ETH has been trading within a downward trend channel. The current price is approximately USD 1,623 – a decline of 1.19% over the past 24 hours. The next key resistance level lies at USD 1,679. A sustained breakout above USD 2,117 would be necessary to break the downtrend. Without clear momentum, however, there is a risk of a fallback into the lower support zone of the channel.
Whales Shifting Their Holdings
Data shows that large Ethereum investors are increasingly moving their holdings off centralized exchanges. Over the past 30 days, whale outflows have risen by 216%, while inflows have increased by 125%. Just in the past week, outflows climbed by 34%. This trend suggests that many of these large holders are transferring their ETH to cold wallets – a sign of long-term holding rather than short-term speculation.
Declining Exchange Reserves as a Bullish Signal
ETH reserves on centralized exchanges have dropped by 3.8% within one week – now totalling USD 30.93 billion. Such declines are seen as a positive sign, as fewer coins available on trading platforms reduce selling pressure. This creates a more stable foundation for potential price increases.
Majority of Investors in the Red
According to recent data, around 73% of ETH holders are currently at a loss. Only about 21% are in profit, while 6% are at break-even. This distribution is typical of later phases in a bear market. Such phases are often followed by a market shakeout, where weak hands sell and long-term investors enter.
Our Assessment
Ethereum is currently showing several signs of a potential bottom formation. The combination of technical support near the MVRV zone, declining exchange reserves, and increased activity from large investors points to quiet accumulation. However, the situation remains fragile. Without a clear breakout above key resistance levels, the price could remain under pressure. Those holding or considering buying ETH should closely monitor price action around the USD 1,367 mark.
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Sources
- IntoTheBlock
- TradingView
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $1,777.75 |
| 24h % | 0.43 % |
| 7d % | 12.60 % |
| 30d % | -13.75 % |
| 60d % | -34.90 % |
| 1y % | -43.69 % |
| Market Cap | $214,608,006,997.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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