Ethereum (ETH) finds itself at a critical inflection point, balancing between a potential rebound and further downside. Despite recent bearish pressure, key indicators suggest that a turnaround could be on the horizon—if ETH manages to reclaim critical resistance levels.

MVRV Ratio Suggests Accumulation Phase

ETH’s Market Value to Realized Value (MVRV) ratio currently sits at 0.9, a historically rare level often seen in bear markets. Readings below 1 have previously marked prime accumulation zones, indicating that investors may view the current price range as a buying opportunity.

Two Possible Scenarios for Ethereum

Traders are watching two potential outcomes for ETH. If the asset fails to hold key support, a further decline toward $1,060 remains possible, especially given its repeated struggles to break past $4,000 in this cycle.

On the flip side, reclaiming the $2,500 mark could reignite bullish momentum, potentially driving ETH back toward $4,000. However, for this scenario to unfold, Ethereum needs to establish a strong position above its trendline support, signaling a sustained recovery.

What’s Next for ETH?

With Ethereum at a crucial juncture, investors are closely monitoring price action. A decisive move above resistance could pave the way for a bullish breakout, while failure to reclaim key levels may lead to extended downside pressure. The coming days will be critical in determining ETH’s next trend.