Ethereum is nearing a historically significant price zone defined by the lower boundary of the MVRV Extreme Deviation Pricing Bands–a level that has marked major reversal points in previous cycles. Technical patterns now suggest the market could be setting up for a strong recovery.

MVRV Levels Indicate Undervaluation

According to analyst Ali Martinez, Ethereum is approaching the lower edge of its MVRV band, currently positioned at $1,367. In previous instances–notably in late 2018 and mid‑2022–ETH rebounded sharply after touching this range. The MVRV ratio, which compares market value to realized value, is often used to identify when assets are extremely undervalued or overvalued.

With ETH nearing this threshold again, traders are closely watching for signs of a similar recovery phase, especially as broader market sentiment begins to stabilize.

Technical Chart Patterns Signal Reversal

The ETH/USDT monthly chart shows a bullish hammer forming at the lower boundary of a long-term descending channel. This pattern is typically associated with trend reversals when followed by higher lows. Recent candles display long lower wicks, suggesting that sellers are losing strength and buyers are stepping in around previous accumulation zones.

If this structure holds, analysts see a potential upward move toward $2,880 in the short term–a target that aligns with resistance zones inside the channel.

ETH/BTC Revisits Major Structural Support

Further strengthening the bullish thesis, the ETH/BTC chart shows the pair retesting a key support zone last visited in 2020. Market analyst Crypto Rover highlights that this area has historically marked turning points where Ethereum began gaining dominance over Bitcoin. The use of long‑term quarterly candles offers added context for major cycle shifts.

Short-Term Spike, Long-Term Potential

ETH has dropped more than 1% over the past 24 hours, but the day before the altcoin consolidated at $1768 with a 44% surge in trading volume. This rebound is also being fueled by renewed enthusiasm surrounding Ethereum’s future upgrade–the RISC‑V initiative proposed by Vitalik Buterin, aimed at improving efficiency and scalability.

If ETH holds above the $1,367 MVRV support, it could not only target $2,880 in the near term but also resume a longer-term path toward the $10,000 milestone–a level many analysts see as achievable in the next cycle.

In the meantime, Bitcoin surges past $93,000 as $109,000 target gains momentum.