Ethereum Price News: Local Bottom Could Be Nearby as ETH Drops to $1.8K

Ethereum (ETH) has dropped by 5% in the past 24 hours to $1,800 as bearish sentiment persists.

The top altcoin has now booked a 38% year-to-date (YTD) loss and is currently booking its second-worst February of the past 10 years with a monthly loss of 25%.

This month has been historically good for ETH. However, President Donald Trump has proven to be both a blessing and a curse for the crypto market, as his ongoing trade war, plus his decision to appoint a new head for the Federal Reserve, have rattled the markets and effectively disrupted historical trends.

Ethereum Monthly Performance – Source: CoinGlass

Despite the turmoil, net outflows to Ethereum exchange-traded funds (ETFs) have slowed down, as investors withdrew only $112 million last week from these products compared to $162 million the week before.

Nonetheless, market sentiment remains heavily depressed. The Fear and Greed Index recently dropped to 11 after a brief recovery to 14, indicating that investors remain pessimistic about the future of cryptos.

On-Chain Metrics Favor Bullish Outlook

As ETH hits $1,800, investors seem to be realizing that the market is taking things too far.

On-chain metrics compiled by Santiment show that a local bottom could be nearby, as their behavior is mimicking that of April 2025, back when ETH started to rebound off $1,400.

First off, the MVRV’s 30-day ratio, which is a metric that tracks the relationship between ETH’s market cap and the realized value of each token in circulation, has started to move higher.

Ethereum MVRV Ratio (30D) – Source: Santiment

This is often an indication that investors have started to accumulate and take advantage of the latest dip.

When the MVRV Ratio rises, it indicates that the cost basis of each ETH token in circulation is increasing relative to the token’s price. Hence, this means that investors could have bought the token the last time it dipped to $1,800.

We can see in the chart above how this behavior has often supported a recovery in the near term. Hence, we may expect a strong rebound in the price of ETH in the short term, possibly eyeing the $2,200 resistance as the next stop.

Ethereum Staking Metrics – Source: Santiment

In addition, staking activity is also relatively similar to that of April 2025, as the realized value of all ETH staked via the network’s 2.0 contract has steadily declined at the same time that the MVRV of all staked tokens is reaching similar levels compared to that time.

This is an indication that investors who are buying ETH lately have opted to stake their tokens. In the near-term, this reduces the asset’s circulating supply and sets the stage for a supply shock.

ETH Retests Key Support at $1,800 – What Next?

Heading to the daily chart, we can see that the $1,800 price zone has been quite relevant for market participants in the past, both as support and resistance.

ETH/USD Daily Chart – Source: TradingView

We already got a mild rebound off this mark recently, and now the market is retesting this area to see if buying interest persists.

If $1,800 falters, then ETH could drop to our ultimate target of $1,600 – a demand zone that we believe could mark the end of this bearish market, as discussed in a previous Ethereum price prediction.

For the time being, contrarian signals continue to pile up, and investors are behaving as if the cycle’s bottom is nearby – if not in already. There’s evidence of ongoing accumulation, and staking activity is rising. Hence, ETH could bounce back soon, even in the midst of a chaotic macro backdrop.