A key on-chain indicator for Ethereum has flashed again, suggesting the second-largest cryptocurrency may be near a price bottom. According to crypto analyst Ali, Ethereum's MVRV (Market Value to Realized Value) ratio has dropped below 0.8, a level historically associated with deep accumulation zones and seller exhaustion.
Historical Pattern of the MVRV Ratio
The MVRV ratio measures how the aggregate market value compares to the total realized value of all coins. When it falls below 0.8, it indicates that the market is deeply oversold. Ali noted that the last three times this happened — in December 2018, March 2020, and June 2022 — Ethereum's price bottomed and then reversed into a bullish trend. Traders are now watching closely to see if this instance repeats that pattern.
Ethereum's Current Price Action
At the time of writing, ETH is trading at $1,802, up 1.18% in the last 24 hours and 1.78% over the past week. It has outperformed Bitcoin recently, breaking a streak of lower highs and lower lows. Ethereum surpassed its 50-day moving average at $1,767 for the first time since mid-May, recovering from a July 8 low of $1,710.
Bulls faced resistance at $1,831 on July 6 and initially failed to hold above the 50-day MA. A sustained move above that level could pave the way for a test of $2,000, followed by the 200-day MA at $2,214. The derivatives market is also showing signs of stabilization, with speculation easing and longer-term positioning increasing.
Energy Consumption Post-Merge
Separately, a new report from the Cambridge Centre for Alternative Finance (CCAF) revealed that Ethereum's electricity consumption has dropped to just 7.87 GWh annually after The Merge — a reduction of over 99.9% from its pre-Merge level. The shift from proof-of-work to proof-of-stake has dramatically cut the network's energy footprint.