Will Ethereum (ETH) Hit a Bottom Soon? Check out the Latest Analysis!

Updated

April 9, 2025

Gambar Will Ethereum (ETH) Hit a Bottom Soon? Check out the Latest Analysis!

Jakarta, Pintu News – A recent look at on-chain data shows a significant drop in the Market Value to Realized Value (MVRV) ratio of Ethereum . This decline may provide an important signal for the future of ETH price.

Getting to know Ethereum (ETH) MVRV

Ether's MVRV just hit 0.87, the lowest since December 2022!

Are you buying or selling $ETH? pic.twitter.com/oL59QAlLRs
— IntoTheBlock (@intotheblock) April 7, 2025

The MVRV ratio is an indicator that compares the market capitalization of Ethereum (ETH) to its realized capitalization. Realized capitalization represents the total investment made by investors in the cryptocurrency, while market capitalization reflects the total supply value based on the current spot price. This ratio gives an idea of whether, overall, investors are experiencing unrealized gains or losses.

Also Read: Bitcoin (BTC) is recovering, but big hurdles still loom in April 2025

Recent Analysis of Ethereum (ETH) MVRV Ratio

Recently, Ethereum’s (ETH) MVRV ratio has decreased to 0.87, indicating that the average wallet on the network is experiencing a net loss. This decline reflects unfavorable market conditions, with the ratio value reaching its lowest point since December 2022. That period was the end of last year’s bear market, signaling a potential repetition of similar conditions today.

Long-term Implications of Declining MVRV

While the current situation may seem bleak for investors, a decline in the MVRV ratio could actually be positive in the long run. When few investors have their profits above water, the likelihood of massive selling to take profits is lower. Under these conditions, asset prices tend to bottom out, which can be a turning point for value recovery.

Current Ethereum (ETH) Price Movement

Ethereum (ETH) has seen its price drop to as low as $1,550 after a crash of around 12% in the last 24 hours. This situation adds complexity to market analysis, but also opens up opportunities for investors to enter the market at lower prices if they believe in a long-term recovery.

Takeaway: What’s Next for Ethereum (ETH)?

While a low MVRV ratio is often taken as a signal that a price bottom may be near, there is no guarantee as to how long Ethereum (ETH) will remain at these levels before bullish momentum returns. Investors are advised to conduct in-depth research before making any investment decisions, given the high volatility in the cryptocurrency market.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.