Ethereum's MVRV Z-Score Signals Potential Bottom as Accumulation Trends Emerge

Ethereum's MVRV Z-Score, a crucial metric for determining the valuation of its native token, Ether (ETH), has reached its lowest point in 17 months, indicating a possible bottom for the second-largest cryptocurrency. The MVRV Z-Score for Ethereum is approaching the accumulation zone, historically associated with undervaluation, suggesting that ETH may be trading at a discount compared to the total capital inflow into the network. Data from CryptoQuant shows a spike in daily ETH inflows into accumulation addresses, indicating aggressive accumulation by institutional investors and long-term holders while the MVRV Z-Score remains undervalued. Ethereum whales holding between 1,000 and 10,000 ETH have been accumulating aggressively since July 2024, coinciding with Ether's price pullback, signaling anticipation of a price increase in 2025. As of March 6, ETH is trading near $2,291, testing key support levels, with the possibility of a strong rebound towards $3,650 and potentially higher levels.