Ethereum has successfully reclaimed the $2,000 mark, signaling a resurgence in bullish sentiment after a prolonged period of consolidation beneath this key psychological level. Currently, ETH is trading at $2,066.26, reflecting a notable increase of 9.33% within the last 24 hours, as the broader cryptocurrency market continues its upward trajectory.
The recent rally has been bolstered by various on-chain recovery signals. Throughout February, Ethereum exhibited sideways movement near the $1,900 mark, following a significant drop of around 60% from its prior peak. The cryptocurrency found support at the $1,750 level, which has been pivotal in forming the foundation for its ongoing recovery.
According to data from Santiment, Ethereum”s 30-day Market Value to Realized Value (MVRV) ratio has reached approximately -5.5%, indicating a shift from a state of extreme undervaluation to a mildly undervalued condition.
Whale activity has also played a crucial role in this upward movement. Data from Lookonchain reveals that a whale wallet invested $14.5 million to acquire 7,008 ETH at prices close to $2,070. Additionally, another large wallet transferred 20,000 ETH, valued at roughly $38 million, from major exchanges in a brief period. This surge in whale accumulation has led to profitable high-leverage long positions, with one trader reportedly earning over $760,000 amid the ongoing rally.
On the institutional front, Ethereum spot ETFs have witnessed a substantial rebound, recording net inflows of $125.87 million, including $61.94 million from Fidelity“s FETH. This marks a notable turnaround after several weeks of outflows, hinting that institutional investors are positioning themselves ahead of a potential uptrend. Furthermore, the Coinbase Premium Index has turned positive, indicating that ETH is trading at a slight premium on Coinbase compared to offshore exchanges.
As we approach the expiration of approximately $893 million in ETH options at a Max Pain level of $2,200 this week, the Put-to-Call ratio stands at 0.78. The mechanics of options expiration may temporarily influence price movements, but the sustainability of this rally will heavily depend on demand in the spot market, rather than on expiry-related activities.
The reclaiming of the $2,000 level by Ethereum represents a potential structural shift in short-term sentiment. While momentum indicators have turned positive, the ability of ETH to maintain strength above various resistance zones will be critical in determining whether this rally transitions into a larger trend reversal or if it remains a mere relief bounce within a broader consolidation phase.
