- Ethereum’s price stabilization develops into a double bottom pattern, facilitating a recovery above the $2,000 barrier.
- Ethereum’s Market Value to Realized Value (MVRV) ratio has fallen to the undervaluation zone of 0.78%
- The relative strength index rose to 48%, suggesting that market bullish sentiment is improving to support price recovery.
On Thursday, Ethereum price registered a slight decline of 1.45%, trading at $2,024. This decline indicates that supply pressure at the weekly resistance level of $2,142 remains intact and that near-term consolidation will continue. Although the price trend does not yet confirm a sustainable recovery, the latest on-chain data shows signs of a historic bottom and a higher possibility of recovery in the short term.
$ETHMVRV suggests long-term opportunities
Over the past six months, Ethereum’s price has fallen from an all-time high of $4,955 to a current trading value of $1,975, marking a 60% loss. As a result, the market capitalization of these assets decreased by $244 billion.
This downward trend is consistent with a broader market correction amid macroeconomic uncertainty, geopolitical tensions, ETF outflows, cascading long-term liquidations, and the recent Jane Street 10am dump conspiracy theory.
Amid the price correction, Ethereum’s MVRV metric has recently fallen into undervalued territory.
This metric divides the current market capitalization by the total cost basis (realization cap) of all coins, revealing the average holder’s profitability. According to analysis shared by market analyst Ali Martinez, the graph below highlights the red line at 3.2, yellow at 2.4, green at 1.0, and blue line at 0.80 overlaid on a logarithmic price scale. $ETH From $100 to $10,000.
The blue MVRV line has fallen below the 0.80 mark several times during the previous cycle’s lows, and it $ETH The lowest price for that period.
As of late February 2026, this ratio is approximately 0.78 (falling into territory that correlates with major valuation nadir in the asset’s history). The corresponding past drawdown is reflected in the accompanying drawdown. $ETH The price line (black) when the ratio enters this sub-0.80 zone.
The recent reading is just below the long-standing gap of 0.80, repeating the same trend seen in the previous stages of the bear market from 2020 to 2024-2025.
Ethereum price rises to $2.6 million in double-dip pattern
After a significant drop in early February, Ethereum price has stabilized above the $1,800 level. Although the coin price has been trading above this support for over three weeks, it has struggled to break through the $2,056 resistance level, highlighting the market uncertainty and lack of conviction among buyers and sellers.
However, upon deeper analysis, $ETHThe daily shows two sharp reversals from the $1,800 support, indicating the formation of a double bottom pattern. This “W” shaped pattern is often seen at major market bottoms and indicates new bullish momentum in the market.
The formation of a new high in the momentum indicator RSI highlighted the increasing buying pressure at the bottom level. Currently, Ethereum price is trading at $2,050 facing overhead supply from $2,056.
$ETH/USDT- 1 day chart
A possible breakout of this resistance level will further intensify the market buying pressure and encourage a rally towards $2,628.
Also read: What’s next after Polkadot price rises to $1.7?