• Ethereum struggles to maintain $2K, with whales offloading 40,000 ETH worth $89.9 million.
  
• Over 60,000 ETH moved to exchanges in two weeks, signaling preparations for further sell-offs.
  
• Ethereum’s MVRV ratio drops below 1, indicating potential for price reversal if demand rises.
  

Ethereum (ETH) faces significant challenges as it battles to maintain the $2K price. On March 6, 2025, a notable market event occurred, with Ethereum’s unrealized profit ratio for large holders falling to levels last seen in November 2022. This shift suggests that even whales holding substantial ETH amounts are experiencing losses.

A substantial sell-off occurred when a whale received 114,500 ETH as part of Genesis Trading’s liquidation in August 2024, offloading 40,000 ETH worth around $89.9 million over the past two days. This sale has significantly reduced the whale’s ETH holdings by 30%, signaling a loss of confidence in Ethereum’s current price trajectory.

Ethereum’s price has been under heavy selling pressure, with the token dropping over 13% in the past week alone. On-chain data from Arkham Intelligence reveals a sharp increase in large investors moving ETH to exchanges, a sign that traders are preparing to sell their positions. Over 60,000 ETH has been deposited onto exchanges in the last two weeks.

Despite these bearish signals, some analysts are considering the possibility that Ethereum could be nearing a bottom. The Market Value to Realized Value (MVRV) ratio, a key metric for determining whether an asset is undervalued, has fallen below 1. Historically, this has signaled that ETH is trading close to its average purchase price across all holders, suggesting the potential for a price reversal if demand picks up.

Ethereum’s recent price action mirrors the behavior seen in 2019 during the Federal Reserve’s previous monetary tightening cycle. Analyst Benjamin Cowen pointed out that ETH formed a wedge pattern before breaking out and crashing, marking the cycle bottom. This historical pattern raises questions about Ethereum’s potential for a recovery if it stays above the $2,000 level.

Technical indicators paint a complex picture of Ether’s short-term future. The Relative Strength Index (RSI) for ETH stood at 35, suggesting that ETH is in an oversold condition, which could trigger a potential price reversal. However, the Moving Average Convergence Divergence (MACD) has shown a bearish crossover, with the MACD line crossing below the signal line, signaling continued downward momentum.

On the other hand, Ethereum’s Bollinger Bands indicate potential volatility. A price bounce is possible with the price trading near the lower band. However, this remains uncertain given the overall market sentiment, which has reached an extreme fear level of 20 on the Fear and Greed Index.

Ethereum’s network hash rate remains steady at 900 TH/s, and the total value locked in Ethereum-based DeFi protocols has decreased by 5% to $50 billion, highlighting caution among DeFi investors. While this suggests that investors are taking a wait-and-see approach, Ether’s long-term fundamentals may provide a foundation for a potential recovery if market conditions improve.

Read More: Ethereum Whales Accumulate 1.1M ETH as Key Resistance Nears $2.8K