- ETH is at a critical juncture, with its MVRV recently falling below its 160-day moving average
- Ethereum formed falling wedge patterns in 2021, 2024 and now, in 2025
Ethereum (ETH) is at a critical juncture, with its Market Value to Realized Value (MVRV) ratio recently falling below the 160-day moving average. Historically, this metric has acted as a leading indicator of price corrections, with the most notable instance occurring on 23 June 2024.
At the time, ETH recorded a steep 40% decline, dropping from $3,500 to $2,100 on the charts.
Source: AliCharts
The ongoing scenario means that ETH could face similar bearish pressure, prompting traders to remain vigilant for possible volatility in the short term.
A potential buffer for ETH
Ethereum’s critical support range lies between $2,230 and $2,610, where approximately 11.99 million wallets hold 62.27 million ETH. This area serves as a major accumulation zone, potentially acting as a price floor in the event of further declines.
Source: AliCharts
If the altcoin tests this level, it may bounce back due to strong buy interest or break through if selling pressure intensifies.
Historically, ETH has shown resilience around such accumulation zones, making this a crucial price range for traders to monitor. Should ETH maintain support within this zone, it could create a foundation for future bullish momentum.
Falling wedges signal potential reversal
Ethereum has formed falling wedge patterns in 2021, 2024 and now, in 2025—Historically a bullish technical indicator. Falling wedges often precede significant price movements, hinting at a potential upside breakout once consolidation ends.
Source: Trading View
While short-term bearish pressure has been present, ETH’s past behavior within these patterns indicates that a rally could follow.
If the pattern holds, ETH might note a breakout, offering potential buying opportunities for traders watching for a reversal. In fact, the consistency of this pattern in previous market cycles supports an optimistic long-term outlook for Ethereum.
What’s next for Ethereum?
With ETH facing short-term bearish signals due to the MVRV ratio, much effort can be put where it interacts with key support levels. A sustained hold above $2,230–$2,610 could signal strength, while a break below may lead to further declines. However, the presence of a falling wedge pattern does allude to a possible bullish reversal in the long run.
If the altcoin respects its historical trends, there can be a strong upside move once consolidation concludes. While caution is warranted in the short term, long-term indicators hinted at potential recovery and growth for Ethereum.
At press time, Ethereum’s price trajectory reflected a delicate balance between short-term caution and long-term optimism. While the MVRV ratio indicated potential downside risks, the historical significance of the support zone and falling wedge patterns seemed to offer some hope for a bullish recovery.
