ETH MVRV Ratio (365 Days) – Source: Santiment
Looking at the 12-month MRVR and its historical performance, we can see that this metric has been a good predictor of previous local and even cycle bottoms for ETH for the past 7 years or so.
The signal triggers whenever the 365-day MVRV Ratio drops below 15%. Since that happens, ETH has effectively entered the “undervalued” stage based on our analysis.
However, since the price can keep dipping, as it has in the past, the ideal entry comes whenever the 365-day MVRV Ratio rises above 15% again, indicating a trend reversal.
The last three times this signal flashed, these well-timed entries have delivered an average gain of 98%.
Right now, the MVRV Ratio has plunged to -36%, indicating that ETH is severely undervalued based on historical patterns. This is the lowest reading the metric has printed since April 2025, back when the token bottomed at around $1,400.
As we have been mentioning in previous articles, extremely negative sentiment readings tend to be contrarian indicators. However, timing your entries in a bearish market is key to profiting from the upcoming rebound.
Hence, this MVRV Ratio-based signal helps us better timed our entries.
Ethereum Price Prediction for 2026 Unfolded as Expected
Now, looking at our baseline scenario for Ethereum for the first quarter of 2026, a drop below the token’s 100-weekly exponential moving average (EMA) performed as anticipated.