Ethereum Hits Seven-Year Valuation Low, Whales Accumulate

Ethereum’s MVRV Z-Score dropped to about -0.7, the lowest reading since December 2018. The MVRV Z-Score measures the gap between market value and the aggregate cost basis of all holders and adjusts that gap for historical volatility. A negative reading means market value is below the average purchase price and the score sits inside an undervalued band.

ETH traded near $1,684 at the time of the reading. The score reached similar levels in late 2018 and mid-2022; each prior visit was followed by a rebound after several months.

Supply held on exchanges fell from about 8.5 million ETH in December to a low of 6.82 million in late April, then rose to roughly 7.7 million during a May sell-off and eased to about 7.28 million recently. The exchange flow balance shows a net inflow of about 32,100 ETH, a small inflow compared with the earlier withdrawals recorded this year.

On-chain records show withdrawals to long-term addresses through the spring that matched accumulation by longer-term holders. The rise in exchange-held supply in May reflected some short-term distribution.

Social metrics and on-chain flows moved in opposite directions at times this spring. Social dominance for Ethereum rose near 4.0 in early April and cooled to about 1.227 as prices fell. Social volume declined to 94 after spikes during late-May volatility.

Current data show a negative MVRV Z-Score alongside mixed exchange flows and lower social engagement. Market observers note the combination of holder cost positions, exchange supply and social activity as key data points for tracking market behavior.