Ethereum (ETH), the second largest cryptocurrency by market capitalization, might be on the verge of a potentially significant shift, as analysts closely monitor the Market Value to Realized Value (MVRV) Ratio. According to crypto analyst Ali, a key crossover could signal an accumulation phase for ETH.

In a tweet, Ali highlighted the significance of the MVRV Ratio, stating, "Watch the MVRV Ratio closely. A crossover above its 160-day MA has historically signaled strong Ethereum ETH accumulation zones."

This indicator, which compares ETH’s market value to its realized value, previously signaled key accumulation when it crossed over the 160-day moving average (MA).

At the time of writing, Ethereum was in red amid an extended sell-off since the past week. At the time of writing, ETH was down 2.03% in the last 24 hours to $1,843, having marked five consecutive days of declines since March 25.

Top coins fell to their lowest levels in at least a week as stock markets were shaken by macroeconomic concerns. The sell-off continued throughout the weekend, amid hotter-than-expected inflation data released on Friday.

Ethereum bearish outlook: Is reversal imminent?

Ethereum has declined by around 44% in 2025 and is on track for its largest quarterly decrease since the bear market in 2022.

The active developers working on Ethereum-related software fell about 17% last year, according to a December report from Electric Capital. Standard Chartered analysts put out a report this month slashing its year-end forecast for Ethereum by 60%, noting that "its dominance has been waning for some time."

ETH fell to a low of $1,797 on March 29 following five straight days of losses before recovering to $1,848 in the early Sunday session.

Bulls might need to push and hold the price over $2,111 to indicate that the bearish trend is fading. The 50-day SMA around $2,293 may act as a barrier to the upside, but if broken, ETH might rise to $2,550.

On the downside, the $1,800–$1,754 support zone remains critical. Buyers are expected to actively defend this range, as a break below it might reignite the downtrend. The next target in this scenario would be $1,550.