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Talk of Ethereum ($ETH) hitting bottom is increasing, after it fell as low as $2,000 last week.
At this point, Ethereum’s MVRV Z-score has reached -0.42, and analysts have differing opinions on whether the $ETH price is approaching its bottom.
The MVRV-Z score is a key indicator that measures whether an asset is overvalued or undervalued by comparing its market value to its realized value.
Joao Wedson, CEO of cryptocurrency analysis platform Alphractal, stated that Ethereum’s MVRV-Z score has dropped to -0.42, approaching its bottom. According to Wedson, the current MVRV-Z score indicates that Ethereum has entered a capitulation phase.
However, the analyst noted that while the MVRV-Z Score has reached its bottom, it is still not as intense as that seen at the biggest bottoms of the 2018 and 2022 bear markets.
At this point, the analyst noted that although $ETH’s MVRV ratio is in its bottoming range, it has not yet reached the absolute lows seen in 2018 and 2022, warning that further declines may occur before a recovery.
“The most recently recorded low was -0.42. The lowest value in history was -0.76, recorded in December 2018.”
This situation shows that Ethereum is indeed going through a clear capitulation process. However, it’s important to be honest about the data: this data is not yet comparable to the intensity seen at the major lows in 2018 and 2022.
The market is already under pressure, but historically there is still room for further declines before a definitive structural bottom forms.”
Popular analyst Michaël van de Poppe, however, took a more optimistic approach, arguing that the MVRV ratio resembled previous major lows.
The analyst stated that the current MVRV ratio presents a tremendous opportunity to evaluate Ethereum, citing the large discrepancy between the fair price and the current value determined by the MVRV ratio.
“Ethereum is currently trading as low as it was during the April 2025 crash, the June 2022 low after the Terra/Luna crisis, the March 2020 Covid crisis, and the bear market low of December 2018.”
And in all these cases, it created a tremendous buying opportunity for $ETH.”
*This is not investment advice.