Ethereum enters historical ‘reversal sign’\nMVRV ratio in 5 months after plunging 15%\nRSI 30 Proximity ‘Overselling’ sign, Expectations to Buy Back to $3,800 level 1 gateway”\n Possibility of falling to $3,100 level in case of collapse of support line

Chart showing Ethereum's 30-day MVRV ratio (in blue) has entered the "opportunity interval." When the MVRV ratio was between -10% and -20% (shaded interval), the price rebound was historically seen. [Source = Sentiment] 사진 확대

Chart showing Ethereum’s 30-day MVRV ratio (in blue) has entered the “opportunity interval.” When the MVRV ratio was between -10% and -20% (shaded interval), the price rebound was historically seen. [Source = Sentiment]

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is trading around $3,300 on the 7th, suffering a sharp drop of 13% for a week.

Investor sentiment has shrunk amid the ongoing bear market, but some analysts say such a sharp adjustment could be a historic buying opportunity.

According to Sentiment, a cryptocurrency on-chain data platform, Ethereum’s 30-day MVRV (market value to real value) ratio entered the “opportunity section” for the first time in five months.

The MVRV ratio is an indicator of whether a particular asset is overvalued or undervalued. The fact that the ratio has entered an “opportunity interval” defined between -10% and -20% means that short-term holders’ losses have deepened and the sell-off has reached its limit.

Historically, Ethereum has experienced a price rebound every time it enters this segment, which is interpreted as a sign that investor sentiment shifts from “horror” to “accumulate.”

There are other technical indicators that support the positive outlook. Based on trading view data, Ethereum’s Relative Strength Index (RSI) is currently close to the 30-point mark.

Usually, if the RSI is below 30, it is considered to be “over-selling,” a strong reversal signal that could weaken selling momentum and allow buying to flow in.

As the MVRV ratio and RSI indicators suggest the possibility of a “bottom” at the same time, expectations for a bullish reversal are growing.

The daily chart of Ethereum (ETH), which has recently seen a sharp decline, is trading around the $3,300 mark after the collapse of the main support line, and whether it recovers to the $3,800 mark is a key short-term point. [Source: Trading View] 사진 확대

The daily chart of Ethereum (ETH), which has recently seen a sharp decline, is trading around the $3,300 mark after the collapse of the main support line, and whether it recovers to the $3,800 mark is a key short-term point. [Source: Trading View]

Currently, Ethereum is trading around $3,300 based on CoinMarketCap. Market analysts believe that the key is to break through the resistance level of the $3500 range first and cross the $3600 barrier in order for the bullish outlook to materialize.

If market momentum aligns with technical indicators and continues to accumulate investors, the next target could be retaking the $3800 mark, which was previously the main support.

However, the opposite scenario should also be considered. If investor sentiment weakens again and short-term support collapses, the price could fall further to the $3,100 level. In this case, the bullish outlook will be nullified, and the possibility of a prolonged bearish phase cannot be ruled out.