Ethereum (ETH) has seen a significant decline in price, falling from $2,800 to around $1,900 in recent weeks. This drop has triggered a major bearish signal, the first of its kind in two years. 

However, the current price action may also suggest that recovery could be on the horizon.

Ethereum Has A Shot At Recovery

Ethereum’s price recently fell below the Realized Price for the first time in two years, a development that has sparked concern among some investors. This drop has caused the Market Value to Realized Value (MVRV) ratio to decline, indicating that investors are facing approximately 7% losses. 

While this may appear bearish at first glance, it actually presents a potential bullish signal. The previous time Ethereum faced this situation, the altcoin rebounded strongly, and the MVRV ratio improved as the price recovered. This pattern has given some market participants hope that the current situation may lead to a similar recovery.

On the macro level, Ethereum’s overall momentum is showing signs of improvement despite the recent downturn. The Exchange Net Position Change, which tracks the flow of ETH into and out of exchanges, has been declining. 

This indicates that investors are accumulating Ethereum rather than selling it, which is a positive sign. Investors see the current low prices as an opportunity to buy, anticipating a future price increase.

This shift in investor behavior is reflected in the purchase of 138,000 ETH worth approximately $262 million this week. The inflow of capital into Ethereum supports the idea that many investors are positioning themselves for a rebound.

ETH Price Eyes A Rally

Ethereum is currently trading at $1,897, down 32% over the last two weeks. The altcoin is holding above the support level of $1,862, which could act as a foundation for a potential bounceback. If Ethereum maintains this level, it may find its way to higher prices in the coming weeks.

For Ethereum to confirm a recovery, it must breach and flip $2,141 into support. This level is critical for ETH to move toward $2,344 and secure a more sustained upward movement. The factors discussed, including the RSI recovery and investor accumulation, are likely to contribute to Ethereum’s ability to reach this target.

However, if broader market conditions worsen, Ethereum could fall below the $1,862 support, pushing the price to $1,745 or even $1,625. A drop to these levels would invalidate the bullish outlook and suggest further downside potential.

Cardano’s price has seen a steep 22% decline over the past week, mirroring the broader market downturn. As of this writing, the eighth-largest cryptocurrency by market capitalization retails at $0.73.

However, its long-term holders (LTHs) remain unfazed. On-chain data shows that they are holding onto their assets rather than selling.

Cardano’s Long-Term Holders Double Down 

There has been a steady trend of HODLing among ADA’s LTHs, as reflected by its rising Mean Coin Age. According to Santiment, this metric’s value is up 1% since March 3. 

An asset’s Mean Coin Age tracks the average age of all its coins in circulation to provide insights into market trends and hodling patterns among investors. 

When it rises, it suggests that investors are holding onto their coins, signaling accumulation and confidence in the asset’s long-term value. This reflects strong hands and hints at a potential bullish outlook for ADA, especially in light of recent broader market headwinds.  

Moreover, ADA whales have increased their accumulation during the period under review, highlighting the surge in positive sentiment toward the altcoin. On-chain data from Santiment shows that large investors holding between 100,000 and 1,000,000 coins have collectively acquired 20 million ADA over the past week. 

When large investor holdings increase like this, it signals strong confidence among key holders. It reduces an asset’s available supply, creating upward price pressure. 

ADA Eyes $0.94 as Buyers Dominate 

On the daily chart, ADA’s Balance of Power (BoP) is positive at 0.30. This indicator compares the strength of buyers and sellers in the market.

When its value is positive, buyers dominate the market, exerting stronger pressure than sellers. The bullish signal suggests upward momentum, which, if sustained, will lead to further ADA price appreciation.

In this instance, the coin’s price could rally toward $0.94. If this resistance is flipped into a support floor, ADA’s price could jump to $1.16.

However, if sellers regain dominance, the coin’s price could fall to $0.60.

Bitcoin ETF outflows have nearly amounted to $750 million in the last two days as the crypto market consistently fell. BlackRock, the largest issuer, has offloaded around 2,000 BTC in the previous 24 hours.

Together, the ETF issuers sold off enough BTC that they collectively hold less than Satoshi. They surpassed him three months ago and continued buying huge amounts of Bitcoin, indicating truly massive sales.

Bitcoin ETF Outflows Continue

Since the Bitcoin ETFs first got SEC approval last year, they’ve had a transformative impact on the market. Lately, however, they’ve been turning bearish.

Towards the end of February, the market saw $2.7 billion in outflows, and this trend continued. The last four consecutive weeks had outflows, and the market already lost nearly $750 million this week alone.

This marks the seventh consecutive day of outflows for this ETF market. IBIT, BlackRock’s product, led these losses with $151 million in the last 24 hours.

In mid-February, some analysts began speculating that BlackRock would begin selling its Bitcoin, and ETF analyst Shaun Edmondson noticed how large of a trend it’s becoming:

“I know the markets are very ‘risk off’ at the moment with the Tariff uncertainty, but this is yet another outflow day from the US Spot ETFs, collectively now falling below Satoshi again. Given the bullish narrative from the SEC, Strategy raising 21 billion, State [Bitcoin Reserve] race and National [Bitcoin Reserve] bill, I find this a little surprising,” Edmondson claimed.

BlackRock alone has offloaded around 2,000 BTC since Edmondson posted yesterday’s daily tallies. It’s unclear how far the ETF issuers want to take this trend, but these Bitcoin sales are very concerning.

These issuers surpassed Satoshi’s Bitcoin holdings in December, so these outflows have already eaten up three months’ worth of vociferous purchasing.

Still, despite this ETF pessimism, Bitcoin’s actual price could be doing a lot worse. The entire crypto market has been hit with massive outflows, and BTC fell accordingly.

However, the US CPI report this morning was better than anticipated, which allowed Bitcoin a little breathing room. It’s anyone’s guess, however, how long this reprieve will actually last.