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Ethereum (ETH), the second largest cryptocurrency by market capitalization, might be on the verge of a potentially significant shift, as analysts closely monitor the Market Value to Realized Value (MVRV) Ratio. According to crypto analyst Ali, a key crossover could signal an accumulation phase for ETH.
In a tweet, Ali highlighted the significance of the MVRV Ratio, stating, "Watch the MVRV Ratio closely. A crossover above its 160-day MA has historically signaled strong Ethereum ETH accumulation zones."
Watch the MVRV Ratio closely. A crossover above its 160-day MA has historically signaled strong #Ethereum $ETH accumulation zones. pic.twitter.com/Oz06q41EsL
— Ali (@ali_charts) March 29, 2025
This indicator, which compares ETH’s market value to its realized value, previously signaled key accumulation when it crossed over the 160-day moving average (MA).
At the time of writing, Ethereum was in red amid an extended sell-off since the past week. At the time of writing, ETH was down 2.03% in the last 24 hours to $1,843, having marked five consecutive days of declines since March 25.
Top coins fell to their lowest levels in at least a week as stock markets were shaken by macroeconomic concerns. The sell-off continued throughout the weekend, amid hotter-than-expected inflation data released on Friday.
Ethereum bearish outlook: Is reversal imminent?
Ethereum has declined by around 44% in 2025 and is on track for its largest quarterly decrease since the bear market in 2022.
The active developers working on Ethereum-related software fell about 17% last year, according to a December report from Electric Capital. Standard Chartered analysts put out a report this month slashing its year-end forecast for Ethereum by 60%, noting that "its dominance has been waning for some time."
ETH fell to a low of $1,797 on March 29 following five straight days of losses before recovering to $1,848 in the early Sunday session.
Bulls might need to push and hold the price over $2,111 to indicate that the bearish trend is fading. The 50-day SMA around $2,293 may act as a barrier to the upside, but if broken, ETH might rise to $2,550.
On the downside, the $1,800–$1,754 support zone remains critical. Buyers are expected to actively defend this range, as a break below it might reignite the downtrend. The next target in this scenario would be $1,550.