ETH Surges Past $2,000 Mark Following Volatility Jump and Price Recovery
Ether climbs beyond the $2,000 threshold amid increasing volatility and sustained multi-year support levels.
The price of Ethereum (ETH) has increased by 18% after dropping beneath the $1,800 threshold on Feb. 6, successfully recapturing the $2,000 support threshold. Increasing price fluctuations and a reduced MVRV Z-score reading are additionally pointing toward the formation of a local price floor.
Key takeaways:
- The realized volatility of Ethereum on Binance has climbed to levels not witnessed since March 2025, suggesting a possible price rebound.
- The MVRV Z-Score for Ether has fallen into territory associated with accumulation, indicating that ETH may have reached bottom.
- Ether's long-term trend line in the $1,800-$1,900 range continues to function as a support level.
Ethereum volatility reaches highest point in 12 months
A sudden surge in Ethereum's volatility indicates the market may be transitioning into a phase characterized by heightened activity and significant repricing, based on information from CryptoQuant.
As a metric, volatility measures the degree and speed at which Ether's price moves over a specified timeframe.
The data visualization presented below demonstrates that the 30-day realized volatility indicator on Binance experienced a sharp increase to 0.97 on Thursday, up from 0.37 recorded in mid-January.
When realized volatility spikes to such elevated levels, it signals that the "market has emerged from a period of relative calm and entered a highly volatile environment," according to CryptoQuant analyst Arab Chain in a Quicktake analysis, who further noted:
"Past experience has shown that such readings have often preceded a significant upward move in Ethereum's price."
The previous instance of volatility reaching these heights occurred during the period spanning late March through early April 2025, when ETH price established a bottom range spanning from $1,500 to $1,700.
Following this period, the ETH/USD trading pair experienced a 77% surge reaching $2,700 within a timeframe of less than 30 days. A comparable volatility spike during Q4/2024 came before a 74% increase in Ether's valuation.
Should historical patterns prove consistent, this current volatility spike might signal the conclusion of the bearish trend, positioning ETH for an extended rally spanning multiple months once volatility returns to normal levels and market confidence strengthens.
MVRV Z-Score indicates Ether reached bottom under $1,800
The previous occasion when Ether's MVRV Z-Score fell to the present level of approximately -0.31 occurred in April 2025, following a 66% decline in price. This event aligned with a bottom price of $1,400 and was followed by an extended rally spanning multiple months, during which ETH price increased 258% to reach its $4,950 peak representing an all-time high.
This suggests that, when evaluated from an onchain data perspective, Ether has entered oversold territory and may sustain the current recovery trend, with potential advancement toward liquidity concentration zones between $2,200 and $2,500 over the near term.
Ether's pattern from 2020 suggests an "explosive climb" ahead for ETH price
The current technical framework for Ether bears a strong resemblance to the configuration that initiated its 2020-2021 rally.
The monthly price chart presented below indicates that the price is presently maintaining a multi-year trend line, similar to the support line that held the price between December 2018 and April 2020.
"Every time price holds above this ascending support trend line, it launches into a parabolic rally," as demonstrated in 2020, according to analyst Trader Tardigrade in an X post published on Thursday, who went on to state:
"Now $ETH is testing the trendline again. If it holds here, history says we're gearing up for another explosive climb."
This technical trend line is positioned within the support zone ranging from $1,900 to $1,800, a region where market participants recently purchased 2.9 million ETH, as evidenced by Glassnode's cost basis distribution heatmap.
According to previous reporting by Cointelegraph, ETH has the potential to extend its recovery phase and retest the 50-day simple moving average (SMA) positioned at $2,540, provided that bullish traders successfully drive the price beyond the $2,100 level.