- The current reading marks the beginning of a new trend since October 2023 and indicates decreased profitability which could lead to increased selling pressure.
- The crypto market fluctuations during the early part of the year caused ETH to experience $330M worth of liquidations as a result of heightened market volatility.
- ETH could stabilize its value when prices reach MVRV level 1.0 but inadequate support would push the price to $1,500.
According to recent data the MVRV ratio of Ethereum currently stands at 1.01 which matches its lowest reading since October 2023 when Ether traded around $1,600. When MVRV ratios drop, both short-term traders and long-term holders may start selling their Ethereum to minimize losses or lock in small profits. This increased selling pressure can contribute to a decline in Ethereum’s market price.
Ethereum's MVRV hit 1.01 yesterday. This is the lowest value since October 2023, when Ethereum was trading just below $1600 pic.twitter.com/NiQ7stmOQM
— IntoTheBlock (@intotheblock) March 5, 2025
Currently, Ethereum (ETH) is trading at $2,214.30, with a 7.1% increase over the past 24 hours. Over the recent day Ethereum’s support is at $2,022.69 and resistance at $2,275.16 while respecting its fundamental support and resistance areas.
Ethereum’s MVRV Drop Sparks Market Volatility
A decrease in MVRV ratio indicates Ethereum’s market worth approaching or falling beneath its actual realized book value. Market liquidity decreases because traders avoid large-scale purchases when MVRV ratios decrease.
Data from Coinglass show that, Ethereum network registered significant liquidation events in January and February with noticeable peaks. Long and short liquidations reached $330 million during these periods while showing significant growth in both categories. Market volatility has increased while price swings become more common in trading markets according to these trends.
MVRV Trend and Market Implications
Ever since 2022 the MVRV (Market Value to Realized Value) metric for Ethereum has followed specific trends. Ethereum MVRV kept a consistent range from 0.9 up to 1.3 throughout 2023. Early 2024 brought a market value to realized value reading above 1.5 which perfectly matched Ethereum’s price increase period of strong upward momentum.
MVRV has recently entered a downward trend which shows that Ethereum’s market price growth is decreasing. Price recoveries tend to occur when MVRV approaches 1.0 since trading activity shifts to capture undervalued purchasing scenarios. Historical trends suggest that Ethereum might start recovering from its current cycle because its MVRV ratio stands at 1.01.
