Ethereum surged nearly 10% in the past 24 hours. The rally follows a broader market correction that initially sparked fear among investors.

ETH experienced volatile performance earlier this week. The second-largest cryptocurrency has since rebounded sharply.

While Ethereum's movements remain tightly linked to Bitcoin, recent on-chain data suggests a potential accumulation phase. Analysts point to key metrics indicating the asset may be undervalued.

A post on the CryptoQuant QuickTake platform highlighted Ethereum's Market Value to Realized Value (MVRV) ratio. Contributor Mac noted this metric has fallen below 1. This level historically signals undervaluation.

"When MVRV falls below 1, it signals entry into an undervalued zone in the cycle, indicating an opportunity to buy at a level close to the average purchase price of all holders (including whale investors)," Mac wrote.

Data shows large-scale investors increasing their ETH holdings. The number of accumulation addresses — wallets that receive ETH but never withdraw — has surged. Analysts see this as institutional support forming around the $2,200-$2,300 price range.

Macroeconomic factors continue influencing cryptocurrency prices. The analyst cited the Trump administration's trade and monetary policies as significant factors affecting risk assets. Stricter monetary approaches and inflation concerns could trigger "sharp price drops."

Despite potential volatility, Mac remained optimistic about Ethereum's long-term prospects. "Ethereum still maintains its position as the second-largest cryptocurrency by market cap and is a proven network with thousands of mature DeFi projects," he noted. "As such, institutional investors are likely to accumulate more in this undervalued zone. Therefore, from a long-term perspective, the outlook for Ethereum remains positive."

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.