ETH, the native cryptocurrency of the Ethereum network shows a 1.7% drop

This downtick prolongs weeks-long consolidation in the market reflecting no clear initiation from buyers or sellers to change price trajectory.

ETH price slid 1.7% on Tuesday morning to trade at the $1,893 level. The lackluster trading activity continues to keep the largest altcoin in the familiar consolidation zone, encountering difficulties in gaining momentum for either a decisive breakout or breakdown.

However, the latest onchain data highlights a historical signal of ETH coin trading at a discounted price and an opportunity for its bottom formation.

Ether’s MVRV Ratio Signals Potential Bear Market Opportunity

According to the analytics platform IntoTheBlock, the MVRV (Market Value to Realized Value) ratio for Ether (ETH) has recently plunged to 0.9, a level that is typically observed during bear markets.

This metric, which compares the market value of an asset to its realized value, indicates that the cryptocurrency is underpriced relative to its historical value.

Historically, MVRV ratios below 1 have been linked to favorable entry points for ETH, suggesting that now could be a prime opportunity for investors to consider entering the market. The below chart shows the past trends of the MVRV ratio, highlighting significant periods when the ratio dipped below 1, followed by strong price rallies.

As ETH’s MVRV ratio continues to hover at this crucial level, the coin price could seek suitable support for a bottom formation.

Bear Trap Sets Ethereum Price Breakout From $2,000

On Monday, March 10th, the Ethereum price correction gave a decisive breakdown below the $2,000 psychological. The downfall also breaches below 61.8% Fibonacci retracement level, a crucial pullback support for buyers to recuperate the prevailing bullish momentum.

Thus, the recent breakdown was expected to accelerate the selling pressure but the price trajectory shifted sideways, displayed by a series of neutral candle formations. The lack of follow-up on the downside indicates weakness in sellers’ conviction and opportunity for buyers to counter attack.

If the buyers reclaim the $2,000 level, the previous breakdown would be marked as a bear trap and replenish the bullish momentum. If the theory holds, the Ethereum price could tease rebound to $2,500 mark.