Ethereum in 'Opportunity Zone' Still Struggling to Recover

Ethereum remains under pressure after a sharp decline that unsettled investors across the crypto market. Its MVRV ratio shows ETH has entered what is described as an "opportunity zone," a range between negative 18% and negative 28%. Historically, entries into this band have often preceded price reversals as unrealized losses deepen and investors accumulate, but that probability does not guarantee an immediate rebound.

Current macro conditions, including liquidity constraints and cautious sentiment, could delay accumulation and extend consolidation. On-chain metrics show short-term holders are regaining influence. The MVRV Long/Short Difference, which measures profitability between long- and short-term holders, shifted back toward short-term profitability after late-January signs of improvement.

Short-term traders tend to sell quickly, and their renewed profits increase the market’s vulnerability to further downside. Long-term holders have also changed behavior.

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