Ethereum Price Predictions: Could It Drop Below $2,000? Here’s What Analysts Are Saying

Ethereum has seen a significant decline in value, losing over 27% in the past month. As it trades around $2,800, analysts are forecasting a potential price bottom near $2,000. Key on-chain metrics point to this possibility, suggesting that a further drop could lead to a rebound.

Key Takeaways

Ethereum has recently dropped to around $2,800, down from a peak of $4,800.
Analyst Ali Martinez predicts that ETH could reach a local bottom of about $2,000.
The MVRV Pricing Bands indicate a potential for a further 28% decline from current prices.
ETH’s current market price is slightly above its Realized Price, suggesting most investors are still profitable but cautious.

Ethereum

Ethereum’s Market Decline and Future Predictions

Ethereum has faced significant challenges in the current cryptocurrency market downturn, suffering a drop of 27.63% in just the last month. Currently, this leading altcoin trades near $2,800, which is a notable decrease from its recent high of approximately $4,800. As the prices keep falling, causing liquidations, analyst Ali Martinez has shared insights regarding a potential market bottom.

Understanding the 28% Potential Decline: MVRV Pricing Bands

In a post on November 22, Martinez shared important on-chain data indicating that Ethereum might be poised to hit a local bottom near $2,000. The MVRV Pricing Bands, which analyze the MVRV ratio and Realized Price, help identify whether Ethereum is undervalued, fairly valued, or overvalued based on investors' average cost basis.

This on-chain metric provides price levels calculated by multiplying ETH’s Realized Price by different fixed multiples (e.g., 0.8x, 1.0x, 2.4x, 3.2x). Each band signifies a varying degree of valuation in relation to the average cost basis.

Ethereum Source: @ali_charts

Historical analysis reveals that Ethereum frequently reaches a local bottom when it dips below the lowest pricing band, specifically the 0.8x RP band (indicated by the blue line). This trend has been consistent for the past three years, evident in instances from June 2022, December 2022, and most recently in March 2025.

As of now, the 0.8x RP band is at approximately $2,007.08. If Ethereum adheres to its historical patterns, investors might see a further 28% correction towards $2,000 before a potential recovery occurs.

Investor Profitability and the Realized Price Metric

The Realized Price reflects the average acquisition cost of all circulating ETH tokens, essentially representing the actual on-chain value. A price above this level indicates profit for the average investor, while a price below signifies a loss.

According to the latest analysis from Martinez, ETH’s current market price sits slightly above its Realized Price at $2,508, indicating that most investors are still in profit. However, recent price corrections and ongoing downtrends raise concerns, especially as positive sentiment in the market weakens.

If Ethereum falls below $2,500, many investors could find themselves at a loss, potentially pushing prices down to $2,000 and stirring a price rebound. Looking ahead, there is speculation that a new bullish phase could elevate Ethereum’s price around $6,021.

As of now, Ethereum's market value is at $2,820, reflecting a modest 1.73% increase over the past day.

Ethereum ETH trading at $2,819 on the daily chart | Source: ETHUSDT chart on Tradingview.com