Analysts debate whether Ether has capitulated or has further to fall

💡 DMK Insight

Ether’s MVRV Z-Score hitting -0.42 signals potential capitulation, but there’s more to unpack here. A drop of 30% in just two weeks is alarming, yet it’s crucial to recognize that the Z-Score is still above its historical lows. This suggests that while some traders may be panicking, there could be a buying opportunity for those looking to accumulate at lower prices. The current price of ETH at $2,009.96 could act as a support level, but if it breaks below this, we might see further downside pressure. Watch for volume spikes as a sign of capitulation or reversal. On the flip side, if the broader market sentiment remains bearish, we could see a prolonged period of consolidation or further declines. Keep an eye on correlated assets like BTC, as its movements often influence ETH. If BTC struggles to hold key support levels, ETH may follow suit. For now, monitor the $2,000 level closely; a decisive break could trigger more selling, while a bounce could signal a potential recovery.