Ethereum (ETH) is showing signs of vulnerability as the Market Value to Realized Value (MVRV) ratio sends a sell signal, suggesting short-term holders are sitting on significant unrealized gains. With Ethereum currently trading around $2,739, concerns are mounting over a potential correction below the $2,410 support level.
According to on-chain data, the 60-day MVRV ratio stands at 8.26%, indicating that traders who bought ETH in the last two months are firmly in profit. In contrast, the 180-day MVRV is at a modest 0.65%, revealing that mid-term holders are only marginally above breakeven. The widening spread between these two metrics — which began in late April — signals a shift in market dynamics, especially after a strong price rally fueled by rising ETF inflows.
Historically, a 60-day MVRV crossing above the 180-day often precedes increased volatility, as it highlights FOMO-driven entries and heightened risk of profit-taking. This trend is now backed by the Network Realized Profit/Loss indicator, which has recorded recent spikes in the positive region — a sign that more traders are cashing out.
If this selling pressure continues, Ethereum may struggle to maintain the $2,410 support level. This would represent a potential 13% decline from current levels and could open the door for a deeper correction toward the $2,000 psychological mark.
Adding to the bearish narrative, the Awesome Oscillator (AO) histogram shows weakening bullish momentum. This further supports the likelihood that Ethereum may soon face downward pressure unless a strong catalyst — similar to the ETF-fueled rally witnessed in April and May — re-emerges to shift sentiment.
Still, some analysts remain cautiously optimistic. A recent report by CoinGape highlighted three chart patterns that could support a rebound to $4,000 if bullish momentum returns. However, without immediate support from broader market conditions, Ethereum’s near-term outlook remains fragile.
Also Read: Ethereum Staking Hits 34.8M ETH as Price Eyes $3K Breakout Amid Bullish Momentum
In summary, Ethereum is flashing clear warning signals as short-term holders dominate with profitable positions. Unless a new wave of buying pressure arrives, ETH risks slipping below $2,410, putting the current uptrend at serious risk.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
