Ethereum has once again come into the spotlight of market participants after a recovery rally that allowed the crypto asset’s price to consolidate above the psychologically significant $2000 mark. At the time of publication, ETH was trading around $2054, showing a gain of approximately 8% over the past few days. For a market that had been under pressure in previous weeks, such dynamics became an important signal of returning buying activity.
Ethereum (ETH) Price Performance. Source: BeInCrypto Markets
Return to a Key Level
Breaking above the $2000 zone carries not only symbolic but also technical significance. In the past, this level repeatedly acted as both support and resistance. Consolidation above it strengthens the short-term bullish structure and improves market expectations, especially amid the recent phase of consolidation and declining volatility.
The current momentum is accompanied by rising trading volumes and increased network activity, indicating organic market participation rather than isolated speculative trades.
On-Chain Signals: Active Accumulation
Blockchain data points to notable activity from large holders. Address 0xAb59 acquired more than 7000 ETH worth about $14.57 million, while another large address — 0x166f — withdrew 20,000 ETH from the Binance and Deribit exchanges within just two hours.
Withdrawals from centralized platforms are traditionally viewed as an indicator of long-term holding, as assets are moved to cold wallets or custodial solutions. Such transactions are usually interpreted as strategic accumulation rather than short-term trading.
Analysts note that similar operations by “whales” often precede phases of heightened volatility or a continuation of upward movement, especially when accompanied by a reduction in exchange supply.
Coinbase Premium Index: Back in Positive Territory
An additional positive signal was the Coinbase Premium Index — a measure of the price difference between Coinbase and Binance. For the first time since early January, the index moved into positive territory. This means that ETH is trading at a slight premium on Coinbase compared to Binance.
Historically, such a situation indicates increased demand from U.S. investors, including institutional funds and asset managers, for whom Coinbase serves as one of the primary regulated venues.
A rising premium is often considered an indicator of domestic demand in the United States and may point to capital inflows into the spot market.
MVRV: Recovery After Undervaluation
The MVRV (Market Value to Realized Value) metric, which reflects the ratio of market capitalization to realized value, is also showing improvement. For Ethereum, it has climbed from deeply negative levels to around -5.5%.
MVRV Ratio of Large Cap Coins. Source: X/Santiment
Although the metric remains in negative territory, this is no longer an extreme undervaluation but rather a moderately negative zone. Historically, exits from deeply negative MVRV levels have often coincided with the beginning of recovery phases following prolonged corrections.
In other words, the market is gradually moving out of capitulation and entering a stage of cautious accumulation.
Resilience Factors and Risks
Despite the positive dynamics, Ethereum’s дальнейшая trajectory will depend on external conditions.
- Key factors include macroeconomic policy of central banks,
- interest rate dynamics,
- overall global liquidity levels,
- stock index performance and risk appetite,
- as well as inflows or outflows from crypto funds.
The crypto market remains sensitive to changes in monetary policy and sentiment in traditional capital markets. In the event of a deterioration in the macroeconomic backdrop, the current momentum may weaken.
Ethereum Coinbase Premium Index. Source: CryptoQuant
Market Sentiment
At present, the overall tone among analysts remains moderately optimistic. A combination of factors — price growth, activity of large players, a positive Coinbase Premium, and improving MVRV metrics — forms a constructive scenario.
If Ethereum manages to hold above $2000 and continue reducing exchange supply, the market may test the next resistance levels. However, confirmation of a sustainable reversal will require not only price growth but also consolidation on elevated volumes over several weeks.
Thus, Ethereum is showing signs of recovery after a period of weakness. Large purchases and institutional demand increase the likelihood of continued growth, but the final confirmation of a bullish scenario will depend on the balance between internal market strength and the external macroeconomic environment.
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