Ethereum Surges by 10% as MVRV Ratio Drops Below 1 – Can Bulls Break Key Resistance for a Bigger Rally?

Ethereum experienced a rollercoaster performance, rebounding a 10% increase in the past 24 hours. It has been tracing the path of Bitcoin, which has led to fear among investors. However, analysts suggest that the rise in the price of Ethereum might lead to a renewed accumulation phase. The Market Value to Realized Value ratio (MVRV ratio) indicates that ETH is undervalued. 

The MVRV ratio has dropped below 1, suggesting large-scale investors are increasing their ETH holdings. These accumulation patterns suggest a strong uptrend in ETH prices. As more and more institutions and investors increase their ETH holdings, Ethereum will shift to a new support zone: $2,200-$2,300. Ethereum price rise and possible accumulation- Does this mean a bigger rally? Let us explore!

The Accumulation Trends and MVRV Ratios

Graph 1 below suggests that the MVRV ratio of Ethereum has touched below 1. Observing closely, it is evident that the ratio has not dropped below ‘1’ since 2023. This pattern suggests that more investors will pour into Ethereum, and its prices will soar in the long term. A big rally is expected because the undervalue period is favorable to institutions and whales

Graph 1- Analyzed by Mac.D., published by Tradingview, March 6, 2025.

Hindrances in the path of ETH Boom

Ethereum has been on an upward trajectory, with strong accumulation and increasing institutional interest fueling its growth. However, despite its bullish momentum, several challenges could slow its long-term progress. The Ethereum pectra grade is long overdue, and the Ethereum Improvement Proposal, EIP-1559 issues are unresolved.

Ethereum Pectra Upgrade

Investors have eagerly awaited the upgrade, but more adjustments will likely be needed, and its release might be delayed. It was slated for late 2024 but postponed to 2025-26. Initially, Ethereum planned for two separate upgrades, Prague and Electra. Now, it has combined both as Pectra. 

EIP-1559 Issues

EIP-1559 is the Ethereum Improvement Proposal, which was introduced in 2021 and primarily focused on reducing gas fees. It introduced a base fee instead of a direct auction system. However, this proposal did not significantly reduce the network congestion, and the gas fees remain high. Also, it carried along MEV (Maximal Extractable Value) concerns.  

Ethereum Price Rise: Can Bulls Push Past Key Resistance?

Ethereum has started its new journey with a fresh upward move. It has surpassed its $2,200 support zone. The current market price of ETH is well above its 100-hour Simple Moving Average, increasing the buying stance. Probing into the reasons behind the price rise reveals that market-wide sentiment and macro factors like institutional interests play a vital role in shaping ETH price trajectories. The question is, can the bulls break through the key resistance levels?

Ethereum is now facing a tough time despite its uptrend, as the previous rallies have slowed. If a new rally is on the verge of its beginning, it is in its early stages. On-chain data shows that long-term investors are confident. Also, the selling pressure is decreasing with increasing institutional interests. For now, all eyes are on the key resistance zone—will Ethereum break through and continue its rally, or will the Bears step in and force a correction? The next few days will be crucial.

In Summary: Ethereum Price Rise-Sustained Accumulation Leading the Charge

As Ethereum enters its new support zone, macroeconomic factors shape its price movements. Liquidity policies, Trump’s crypto reserve suggestions, the white house crypto summit, trade tariffs, and other liquidity policies influence ETH prices and shape its trend trajectories. However, economic uncertainties triggered by the recent US trade war give the decentralized crypto assets a new hope. Despite the market pressure and escalating trade tensions, Ethereum maintains its position as the second-largest cryptocurrency by market cap. Investors are expected to accumulate ETH in this undervalued zone! From a long-term perspective, the Ethereum outlook is positive!!