Blockchain analysis platform IntoTheBlock reported that Ethereum’s Market Value to Realized Value (MVRV) ratio dropped to 1.01 on March 4, reaching its lowest point since October 2023, when the asset was priced under $1,600.

The MVRV ratio measures whether Ethereum is trading above or below its realized value, providing insights into market sentiment. A low ratio suggests long-term holders view the asset as fairly valued or undervalued.

CryptoQuant analyst MAC_D explained that the level often signals a buying opportunity, as the price aligns with the average acquisition cost of most holders, including institutional investors. Historically, such conditions have preceded notable price recoveries during bullish phases.

MAC_D also noted that another key indicator is the sharp rise in accumulation addresses — wallets that have consistently received ETH but never moved their holdings. This trend suggests that institutional investors are actively increasing their exposure, taking advantage of what they perceive as an attractive entry point.

Ethereum is the second-largest digital asset by market capitalization, and its recent price action reflects broader market struggles.

Over the past month, the asset has lost 20% to hit a low of under $2000, its weakest level since November 2023. However, according to CryptoSlate data, ETH has shown signs of stabilization, recovering to $2,169.27 at the time of writing.