Ethereum Today's Price: $2,150
- Ethereum MVRV falls below 1, indicating ETH has entered undervalued territory.
- Developers will finalize the Pectra mainnet upgrade timeline after successful recovery on Holesky testnet.
- If ETH fails to rebound above $2,200, risks further decline to $1,500.
Ethereum (ETH) dropped 3% on Friday as it retreated into undervalued territory, failing to finalize the Pectra upgrade on the Holesky testnet.
Ethereum Nears Undervalued Zone After Pectra Test Failure
Ethereum’s Market Value to Realized Value (MVRV) ratio, which measures the average profit/loss of ETH investors, fell below 1 amid worsening bearish sentiment in the crypto ecosystem. Historically, ETH tends to rebound in bull markets after MVRV dips below 1, suggesting this top altcoin may soon see recovery.
The decline in this ratio signals that ETH’s price is nearing the average purchase price of most investors. This has prompted increased ETH accumulation in deposit addresses, as shown by recent spikes.
"Large-scale accumulation by institutional investors is evident in this undervalued zone with MVRV at 1," noted CryptoQuant analyst MAC_D.
Ethereum’s weak price action in recent weeks stems partly from issues with the Pectra upgrade on Holesky and Sepolia testnets—environments used to test blockchain features before mainnet deployment.
Due to execution-layer client configuration problems, Holesky failed to finalize, causing a temporary chain split. Sepolia also faced challenges but was quickly resolved by developers.
During the latest All Core Developers Consensus (ACDC) call, Ethereum developers agreed to launch a shadow Holesky fork to test Pectra’s functionality before proceeding with the mainnet upgrade.
Pectra will introduce multiple improvements, including account abstraction features like sponsored transactions, wallet recovery, ERC-20 gas payments, and transaction batching. It will also expand the maximum staking limit per node from 32 ETH to 2,048 ETH, among other enhancements.
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Ethereum Price Forecast: ETH Could Drop to $1,500 If It Fails to Reclaim $2,200
Per Coinglass data, Ethereum saw $82.26 million in futures liquidations over 24 hours. Total liquidated long and short positions were $55.28 million and $26.98 million, respectively.
Since Monday’s 15% drop, ETH has struggled to reclaim $2,200—a critical support level marking the lower boundary of a rectangular channel held for over four months post-August 2024 market crash.
If bulls fail to match selling pressure and ETH faces continued rejection at $2,200, it may decline toward the next key support at $1,500.
The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) both remain below neutral levels, indicating bearish dominance.
A daily candle close above $2,850 would invalidate the bearish outlook.
Ethereum FAQs
What is Ethereum?
Ethereum is a decentralized, open-source blockchain with smart contract functionality. Its native currency, Ether (ETH), is the second-largest cryptocurrency and the top altcoin by market cap. The network is tailored for building crypto solutions like DeFi, GameFi, NFTs, and DAOs.
How does Ethereum work?
Ethereum is a public blockchain where developers deploy apps without central authority. It uses Solidity programming and the Ethereum Virtual Machine (EVM) to create smart contract-powered applications.
What are smart contracts?
Smart contracts are self-executing agreements with terms written in code. They automate actions when predefined conditions are met.
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What is staking?
Staking involves locking crypto assets to earn rewards while securing a network. Ethereum transitioned from Proof-of-Work (PoW) to Proof-of-Stake (PoS) on September 15, 2022 ("The Merge"). PoS enhances scalability, decentralization, and sustainability.
What is gas?
Gas measures transaction fees on Ethereum. During congestion, gas fees rise, prompting validators to prioritize higher-fee transactions.