- Ethereum ($ETH) falls towards $2,000 amid continued market volatility and selling pressure.
- Whale activity, ETF activity, and Bitcoin's decline have fueled the recent decline.
- MVRV suggests $ETH It may be near historic lows, suggesting a potential rebound.
Ethereum’s recent rally appears to be losing momentum after the cryptocurrency reached a high of $2,136.
The coin is currently falling rapidly towards the $2,000 level, marking a continuation of the downtrend that has been going on for the past month.
Ethereum ($ETH) is currently trading around $2,015, representing a 34.9% drop from last month.
This sharp monthly decline is part of a broader pattern of volatility in crypto markets this year.
However, trading volumes are still increasing, with $21.5 billion worth of tokens exchanged in the past 24 hours.
market factors $ETH price decline
Several factors have contributed to Ethereum's recent weakness.
One of the main factors is increased volatility in the derivatives and ETF markets.
Recent activity in Ethereum ETFs and Bitcoin-linked derivatives has amplified price movements.
Whale movements are also adding pressure.
Transferring large holders $ETH Selling onto exchanges can lead to panic selling, and this has reportedly happened in recent weeks.
Bitcoin's recent weakness is weighing even more on Ethereum given the strong correlation between the two cryptocurrencies.
Analysts also point to a breakdown of the key support level around $3,000 as a sign of continued downside risk.
Ethereum’s seven-day range of $1,824 to $2,369 highlights how volatile the market is.
However, despite downward pressure, Ethereum network activity remains strong.
Daily transactions and active addresses have not declined, indicating that blockchain usage remains strong.
This suggests that fundamentals may still support the network even if price is under pressure.
Is it possible that the market bottom is near?
On-chain analytics could offer a glimmer of hope for Ethereum investors.
Santiment's Market Value to Realized Value (MVRV) metric shows that: $ETH It is approaching a level of historical significance.
The coin has recently been trading below the 0.80 MVRV price range, a zone that historically corresponds to the market bottom.
This level indicates that many investors are suffering losses, creating conditions for accumulation.
Historical declines below this band have been followed by sustained price recoveries over weeks or months.
Current measurements suggest that Ethereum is undervalued compared to recent history, but the deepest bottom is yet to be confirmed.
if $ETH If the price continues to hold around $2,000 and rebounds, it could be the beginning of a long-term recovery.
Traders and long-term holders will be watching to see if support is confirmed near this level.
After all, while the short-term trend is bearish, on-chain indicators suggest that Ethereum's decline may be nearing a tipping point.
Over the next few days, $ETH It will either stabilize or continue declining towards a lower support level.
