Ethereum (ETH) near $ 2,200: undervalued zone signals buying opportunities despite price pressure and market uncertainty

Ethereum (ETH) near $ 2,200: undervalued zone signals buying opportunities despite price pressure and market uncertainty
Ethereum (ETH): Analysis of the current market situation
Ethereum (ETH) currently deals with about $ 2,200 after it had recently fallen below the $ 2,000 brand. This situation indicates possible signs of an undervaluation, especially if you look at the historical performance of the network.
market development and trade strategies
Ethereum has been actively traded in the past three months. Large dealers, also called "whales", have strategically switched their positions, which led to a weakness of the ETH price. One reason for this was the whale attempt to sell at higher prices, while at the same time trying to buy ETH again at lower prices to reduce their average purchase prices. Some owners who had bought at $ 3,500 began to sell their stocks, and then grant again at around $ 2,500.
active trading whales also sold near the price of the price of $ 2,500 to buy again at lower prices. It is noteworthy that ETH has currently reached 0.025 BTC, which causes traders to set up price warnings for further degrees.
ETH in the undervalued zone
Ethereum is approaching with a market price that is almost $ 2,000, the undervalued zone based on the ratio of the market price at a realized price. The active sale through whales has meant that the realized value is higher compared to the current market value, which indicates an undervaluation.
The market value-to-realized value (MVRV) ratio indicates a signal that there is a purchase opportunity near the average purchase price for values under 1. The current MVRV data indicate that ETH and other old coins may be undervalued compared to previous cycles. Nevertheless, such price levels cannot be a guarantee of an upcoming price rally, especially since some old coins have already lost attractiveness.
challenges and future prospects
Despite the oversized signal at ETH, no price rally has developed so far. One reason for this could be the endeavor of dealers to realize profits while fought near price lows. The whales may expect a rally over $ 4,000 and at the same time try to reduce their average entry prices.
Despite the current price weakness, ETH has increasing accumulation. The cryptocurrency remains a central component of the defi ecosystem and can be used both as security and as a liquidity fuck. In January, ETH experienced a significant inflow for accumulation.
A total of over 19 million ETHs are accumulated in accumulation addresses. Smaller owners (between 100 and 1,000 ETH) realized the highest prices of over $ 2,600, while larger stocks of whales lead to lower-realized prices.
The current price of $ 2,775 shows that some stakers may be under water. The price level of $ 2,800 is a potential sales area in which a large part of the owners may want to sell their stocks. Based on the current data, ETH is nevertheless in the undervalued zone, and every increase of over $ 2,800 could have positive effects on the entire defi ecosystem.
FAZIT
The ETH is currently facing challenges due to a loss of trust into the usefulness of the network and stagnating price growth. Although Ethereum still includes many legacy projects, the platform has not achieved the promised growth progress. The approaches of the Ethereum Foundation are also perceived as too abstract, which continues to lead to a stagnating market.