- The Market Value to Realized Value (MVRV) ratio hinted at a possible historic pattern repeat for Ethereum.
- A declining supply of ETH on exchanges and high buying volume may also contribute to this rally.
Ethereum’s [ETH] is regaining market strength following a month-long decline of 16.81%. Over the past 24 hours, the asset has seen a bullish 2.87% gain, at press time, bringing its price to $2,718.88.
On-chain metrics reveal high buying volumes, particularly from U.S. retail investors. Coupled with historic patterns, this hints at a developing bullish move.
Historic pattern taking shape
A crypto analyst observed that Ethereum’s Market Value to Realized Value (MVRV-z) score on Glassnode is forming a pattern similar to previous movements that preceded major rallies.
The MVRV-z score helps identify potential points of overvaluation or undervaluation for an asset based on its chart position.
According to the analyst:
“Ethereum is yet to enter a bull market this cycle.”
Source: Glassnode
This conclusion was drawn from previous rallies that followed when ETH entered the green zone on the chart.
With ETH recently trading in this zone and beginning to move upward, historical trends suggest the potential for an extended rally.
Supply decreases as retail investors buy
CryptoQuant data shows a declining ETH exchange reserve. From the 2nd of February to press time, available ETH on exchanges has dropped by approximately 714,129.
This significant decline suggests growing demand among investors purchasing ETH in large quantities and moving it into private wallets.
Exchange Reserves quantify the amount of an asset available across cryptocurrency exchanges.
Source: CryptoQuant
AMBCrypto traced recent demand to U.S. retail investors, identified through the Coinbase Premium Index. This index measures buying and selling activity on Coinbase compared to Binance.
A positive reading indicates increased accumulation by U.S. investors. The current index value stands at 0.0255 in the green region.
If U.S. investors continue accumulating alongside other market participants, ETH’s price may continue to rise.
Buying volume surge
The Taker Buy Sell Ratio jumped from 0.967 the previous day to a high of 1.084 — a level last seen on the 3rd of January.
When the ratio is above 1, it signals more buying activity in the derivatives market than selling, reinforcing bullish sentiment.
Source: CryptoQuant
Read Ethereum’s [ETH] Price Prediction 2025–2026
With U.S. investors actively purchasing in the spot market and bullish sentiment building in the derivatives market, ETH’s rally appears to be gaining momentum.
