Analysis: ETH has entered a potential panic selling zone, with the MVRV indicator turning negative, but market opinions differ on whether it has bottomed out.

On-chain data shows that Ethereum has entered a range typically associated with large-scale market sell-offs, with the MVRV Z-Score falling to -0.42. This indicator compares market capitalization with realized market capitalization to determine whether an asset is overvalued or undervalued. However, there is still significant disagreement in the market regarding whether ETH is nearing its cyclical bottom. Some analysts believe that ETH prices may still have further downside potential because the MVRV Z-Score is still far from the bottom levels of the 2018 and 2022 bear markets (historically low at around -0.76). Others point out that from the perspectives of on-chain activity, protocol evolution, and ecosystem structure, Ethereum's fundamentals have not deteriorated substantially; on the contrary, they continue to improve in several key dimensions. It is still too early to conclude that ETH has bottomed out; the current period may be an important window to observe ETH allocation opportunities. (Cointelegraph)