Ethereum (ETH) Has Entered a Critical Accumulation Phase Ahead of Its Next Market Cycle

Ethereum (ETH) has entered a critical phase in Q1 2025, as its price plunged by 45.3%, falling below the psychological $2000 support level for the first time since mid-2023.

Ethereum (ETH) price entered a critical phase in Q1 2025 as it slid 45.3% and broke through the psychological $2000 support for the first time since mid-2023. This steep correction brought ETH into what many analysts called the “accumulation zone,” backed by a key on-chain metric: the MVRV Z-Score.

As market sentiment shifts and whale activity returned, investors were closely watching for potential upside opportunities.

Ethereum’s MVRV Z-Score Dips Below 1: What It Means

The MVRV Z-Score, a widely-used metric in on-chain analytics, compared a cryptocurrency’s current market value to its realized value. When the Z-Score fell below 1, it signaled that ETH was trading below its intrinsic value—a historical buy zone for long-term investors.

This indicator had now entered this critical level again in April 2025. This movement into undervalued territory suggested Ethereum was oversold, presenting a case for accumulation among strategic investors.

This pattern had been observed before: When Ethereum previously entered the accumulation zone in 2020 and 2023, it was later followed by strong uptrends that delivered substantial returns for long-term holders.

MVRV Z-Score: A Key Tool For Timing The Market

The MVRV Z-Score was not just a signal of undervaluation—it was a cycle-timing tool. Investors used it to detect when Ethereum was trading far below its ‘fair value,’ often in anticipation of market sentiment flipping bullish. When this indicator dropped into the green zone, it historically aligned with periods of quiet accumulation before price expansion.

With Ethereum now positioned similarly to prior bullish cycles, market watchers were keeping an eye on this metric for clues on when a trend reversal might take place.