ETH on-chain data signals potential market bottom, analysts say

Ethereum's MVRV-Z score has dropped to -0.42, approaching a bottom, Cointelegraph reported, citing multiple analysts. The MVRV-Z score gauges whether an asset is over or undervalued by comparing its market capitalization to its realized capitalization, with lower values suggesting it is undervalued. According to crypto analytics firm Alphractal, the current score indicates that Ethereum has entered a capitulation phase. The firm noted that the all-time low was -0.76 in December 2018, suggesting that while ETH is in a bottoming range, it has not yet reached the absolute lows seen in 2018 and 2022. Trader Michaël van de Poppe said the current valuation is similar to previous major bottom phases, making it a time to consider buying amid market fear.