Ethereum, the second-largest cryptocurrency in the world, is currently at a critical moment that could mark a major turning point in its price trajectory. After months of steady decline, Ethereum has finally shown signs that it may be bottoming out—triggering excitement among investors who are watching closely for a chance to buy at a discount. As of mid-April 2025, Ethereum was trading around $1,590, showing a modest bounce from its recent lows. While this may seem like just another temporary rise, several deeper metrics point to something much more significant.

One of the clearest signs is that long-term Ethereum holders are starting to sell at a loss. This phase, often referred to as “capitulation,” is when seasoned holders finally give up hope and begin to exit their positions. Historically, this type of behavior often occurs near market bottoms, as emotions peak and prices reflect maximum pessimism. The fact that these experienced investors are now selling into weakness suggests that Ethereum may be entering a classic accumulation zone—where prices are low, but upside potential is high.

Supporting this view is a noticeable increase in on-chain activity. Ethereum’s network has seen a spike in the number of daily active addresses and transactions, even as prices have remained relatively low. This suggests that retail interest in Ethereum is rising, with users continuing to engage with its ecosystem despite short-term bearish sentiment. Typically, rising network activity during a price slump indicates that users are taking advantage of discounted prices and preparing for a longer-term recovery.

Whale movements have also added fuel to this narrative. Over half a million ETH have changed hands among major wallets in just a few days. While some whales appear to be taking profits or rebalancing, others are accumulating—taking advantage of lower prices to strengthen their positions. One long-term Ethereum wallet, dormant since 2016, recently sold thousands of ETH during the dip. Interestingly, this wallet only ever moves during major corrections, which in the past has often marked key market turning points.

Another key indicator, the Market Value to Realized Value (MVRV) ratio, has dropped to levels typically associated with major market bottoms. When the MVRV falls deep into negative territory, it shows that many investors are holding coins worth less than what they paid—again pointing to a ripe moment for accumulation. Historically, these conditions have set the stage for significant recoveries in price.

In summary, Ethereum may be nearing the end of its latest correction. Long-term holders are capitulating, whales are repositioning, and on-chain data signals growing interest in the platform. While prices may remain volatile in the short term, this period could represent one of the best risk-reward entry points for those looking to invest in ETH for the long run. With the broader crypto market beginning to stabilize, Ethereum might soon lead the next bullish wave.