Key Highlights
- Ethereum’s MVRV ratio has reached the 0.8 to 1.0 range, a zone historically associated with potential value resets
- ETH encountered strong selling pressure at $2,400 resistance and declined to $2,100
- Current trading occurs beneath the $2,200 level and the 100-hourly Simple Moving Average
- Immediate support zone exists at $2,100–$2,150, while deeper cushion appears near $1,770 upon breakdown
- Breaking above $2,200 could enable progression toward $2,240, $2,275, and possibly $2,385
Ethereum hovers around $2,100 following a substantial decline from the $2,385 region. The asset breached multiple levels including $2,320 and $2,250, eventually breaking through a significant bullish trend line that had provided support near $2,160 on the hourly timeframe.
The recent bottom touched $2,100. Current consolidation activity occurs marginally above this threshold, positioned beneath the 23.6% Fibonacci retracement level calculated from the $2,385 high to the $2,100 low.
ETH remains beneath the 100-hourly Simple Moving Average, reinforcing the near-term bearish structure.
Initial resistance emerges at $2,165, with the subsequent barrier at $2,200 where the 100-hourly SMA resides. Reclaiming $2,200 represents the foundational requirement for any bullish reversal scenario.
Should ETH overcome $2,200, attention shifts to $2,240, aligning with the 50% Fibonacci retracement, followed by $2,275 and $2,320. Extended momentum could target $2,385.
Regarding downside risk, a break below $2,100 brings $2,060 and $2,020 into focus. The $2,000 threshold serves as the primary support floor.
MVRV Ratio Reaches Historical Buy Zone
From a broader perspective, Ethereum’s MVRV ratio has descended into the 0.8 to 1.0 territory. Analyst Ali Charts, utilizing Glassnode data, highlights that this zone has historically preceded substantial multi-month rallies.
https://twitter.com/alicharts/status/2034559606668570900?s=20
Previous recoveries originating from this zone have varied from approximately 129% to exceeding 5,000%, though each market cycle operated under unique circumstances. This zone indicates potential exhaustion of selling pressure rather than guaranteeing immediate upward momentum, suggesting limited downside risk compared to previous elevated price points.
ETH achieved a cycle peak near $4,955 before entering this corrective phase. The present valuation around $2,100 reflects a decline exceeding 57% from that summit.
Analyst Identifies $2,150 as Critical Support
Analyst Ted Pillows shared commentary on X regarding Ethereum’s current technical position. He observed that ETH experienced substantial rejection at the $2,400 resistance zone and currently retests $2,150 as prospective support.
https://twitter.com/TedPillows/status/2034554720593772615?s=20
The analysis presented by Ted Pillows illustrates a pattern of descending peaks, where successive bounces have failed to generate meaningful upward progress. This formation maintains the possibility of additional downside should support levels fail to hold.
The $2,150 area corresponds with a previous consolidation region and serves as a critical short-term inflection point.
