Ethereum Hits the Dip Zone That Sparked Huge Rallies

A metric that has marked every major Ethereum (ETH) bottom since 2016 is lighting up once more, and analysts say long-term cryptocurrency investors should be paying attention.

Specifically, Ethereum’s MVRV Z-Score has fallen to 0.29, sliding toward the same below-zero range that has historically signaled generational buying opportunities, according to the analysis shared by popular crypto trading specialist Ali Martinez in an X post on November 26.

In every cycle, including 2016, 2019, 2020, and 2023, Ethereum’s most explosive rallies began only after this indicator dropped beneath zero, marking deep undervaluation relative to realized value. The current reading is not quite negative yet, but it is hovering just above the threshold that has produced some of ETH’s strongest recoveries.

Familiar Pattern Forming Again

As it happens, the chart shows how Ethereum price bottoms have repeatedly aligned with MVRV Z-Score resets. In each of the boxed regions where the metric slipped below zero, accumulation periods quietly formed before powerful upward expansions. This includes the 2019 recovery, the 2020 pre-bull run phase, and the 2023 reset that preceded ETH’s climb toward its cycle highs.

Now, the metric is inching toward that zone again. While the market remains volatile, the structure resembles previous moments when panic selling exhausted itself before long-term buyers stepped in. In this case, it’s the ‘$10B HyperUnit Whale’ adding a massive $44.5 million long bet.

With ETH still trading well below its all-time high (ATH) and late-cycle indicators resetting, analysts argue that conditions are lining up for another potential reversal, provided the Z-Score dips further into the historical accumulation band.

Ethereum Price Analysis

Indeed, Ethereum’s price currently stands at $2,912.27, which represents a 0.75% gain on the day, having dropped 5.76% across the week, and accumulating a loss of 30.12% over the past month, according to the most recent chart information.

Whether Ethereum ultimately follows its past patterns will depend on broader macro conditions and Bitcoin (BTC)’s next major move. But the signal traders have been waiting for is now closer than it has been in over a year.

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