Ethereum has seen a slight price increase of 1.1%, trading at around $1,831.35 as analysts highlight its undervaluation using the MVRV Z-Score. A significant resistance level of $1,922 must be breached for a bullish trend to be confirmed. The upcoming Pectra upgrade and staking incentives could provide the momentum needed for a breakout or significant price surge in the coming weeks.
Ethereum’s price hike has been modest in the recent 24 hours, climbing 1.1% to a trading price of about $1,831.35. This bump comes amidst a general downturn in the crypto market, which saw a 1.9% drop, now totalling a market cap of around $3.09 trillion. The tussle between bulls and bears continues, as ETH types hover around pivotal price levels, with all eyes on key barriers for bullish confirmation.
One significant metric making the rounds is the MVRV Z-Score, indicating that Ethereum is currently undervalued. Analysts are keenly eyeing this as a potential signal for upward movement within the coming weeks. This indicator raises a crucial question — can Ethereum break through resistance and perhaps even challenge Bitcoin’s dominance?
According to crypto expert Traders Paradise, Ethereum’s positioning on the MVRV Z-Score chart suggests it’s falling into undervaluation territory, implying a potential buying opportunity. This score contrasts the coin’s current market value with its realized value, which is vital for assessing fair price.
When the MVRV Z-Score drops below zero, that’s considered a green signal indicating ETH is undervalued. Conversely, a high score above seven may signify an overvalued state—making things a bit precarious. Historically, whenever the score dipped into the green zone, Ethereum’s price experienced impressive rallies.
The chart has shown multiple historical instances where the MVRV Z-Score fell into the green, including notable months like August 2016, February 2017, and August 2020, each marking a price bottom for ETH. For instance, after the August 2020 decline, Ethereum’s price surged from around $200 to over $4,000 by mid-2021—a wild ride.
On the flip side, there are red highlights that mark extreme undervaluation levels, which has occurred in February 2019, February 2020, and again, February 2025, indicating an all-too-familiar low for Ethereum’s pricing. Back then, prices at the lows were $100, $200, and currently sit around $1,500, suggesting a similar pattern may lie ahead.
Currently, Ethereum sits in a precarious position with an MVRV Z-Score around -1.5, painting a picture of potential undervaluation. If historical patterns hold, this could be another opportunity for savvy investors to consider entering the market.
But it’s not all straightforward. Ethereum must overcome resistance levels set at approximately $1,829.87 and a crucial $1,922. If Ethereum can vault over the $1,829 mark, speculations rise that it could reach $2,315 or even beyond.
Indicators are showing some bullish signs. The relative strength index (RSI) currently sits at 57.68, trending upward, suggesting increasing momentum. Meanwhile, the Choppiness Index (CHOP) reads at 46.95, descending, indicating a market transition may be underway, pointing towards stronger price movements.
So, what lies ahead for Ethereum? While the MVRV Z-Score and growing on-chain activity paint a picture of impending opportunity, overcoming the $1,922 barrier is essential for establishing a bullish trend. The upcoming Pectra upgrade in May may just be the catalyst Ethereum requires. With the inflow of staking rewards likely drawing in more investors, the forecast could get optimistic.
It seems ETH is standing at a defining moment. The charts indicate we’re sitting in a historical buy zone. However, broader market factors, including Bitcoin’s trajectory and overall sentiment, remain pivotal in this unfolding narrative.
Disclaimer: The information shared represents the views of the author or sources cited and is intended purely for informational purposes. Financial losses can occur with cryptocurrency investments.
