Is Vitalik Underselling? Analyst Scores Big ETH Buy Opportunity

If history rhymes, here are ETH’s best long-term entry levels.

After briefly setting a new price record last summer at around $5,000, ETH joined the rest of the market in the post-October slump and lost nearly 50% in months. It tried to resume its run in mid-January when it jumped to $3,400, but was rejected again, and subsequent corrections pushed it south to $1,800 several times.

Although it has managed to defend that level for now, it is still trading 45% below its mid-January peak. The massive sell-off has continued, and one prominent analyst has placed what could be valid entry points for long exposures.

The sale is ongoing

If we compare the price of ETH with the total flow of Ethereum ETFs, we will see a strong similarity in investor behavior and price movement. For example, net outflows peaked at more than $15 billion in early October before the massive crash on October 10. Since then, outflows have been dominant, with investors withdrawing more than $3 billion on February 24.

In addition, the founder of Ethereum also joined the sales spree. CryptoPotato has reported several times about Vitalik Buterin’s massive dumping of ETH tokens in the past few weeks. The latest on-chain data shows that he lost about 17,000 ETH in less than a month, worth an estimated $34 million.

In a post titled “Vitalik Buterin Sells Ethereum Near Bottom,” popular analyst Ali Martinez explained why the co-founder may regret his timing as the bottom may be closer than expected.

ETH Entry Points

Martinez said that one of the most reliable “undercover metrics” of the largest altcoin – the MVRV Ratio – is currently 0.78, while the asset is close to or has reached a significant bottom at levels below 0.80.

However, his disclaimer indicated that because Ethereum is currently not considered undervalued according to on-chain metrics, this does not mean that its price cannot decrease – “especially during difficult distribution phases.”

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If another correction will take place, the analyst revealed the most critical levels that could hold their fall – $1,800 (which was tested yesterday), followed by $1,584 (the first major support below), $1,238 (the second macro support), and $1,089 (the deep area of ​​capitulation). Martinez believes that these precise levels can be ideal entry points.

“If history rhymes, a rally below $1,800 – especially near $1,584, $1,238, and $1,089 – could provide a strong long-term stance. But, volatility may continue before confirmed lows form.”