Ethereum briefly plummeted to $1,415 on Monday amidst a broader market bloodbath. The crypto asset has since recovered and is currently trading at $1,505. Despite this, its price was still down by 15% over the past 24 hours.

This sharp decline comes as the broader cryptocurrency market reacts negatively to the Trump administrations intensified global tariff approach. Data suggest that the $1,290 support level now marks a critical threshold for Ethereum, with whales average cost basis signaling potential recovery or further decline.

Ethereums Next Major Support

CryptoQuants analysis indicates that Ethereums next major support level is at $1,290, where the average cost basis (realized price) of whales holding over 100,000 ETH sits. With the average cost basis for all Ethereum holders around $2,200, many are currently facing losses.

Despite this, the on-chain analytic platform stated that the altcoin has shown resilience in the past, such as during the Terra-Luna crisis in June 2022, when it reached a low of $870 but quickly rebounded. This suggests potential for recovery even in challenging market conditions.

Meanwhile, whale activity and market behavior indicate that there may be more challenges ahead. As the assets price took a massive hit, Spot On Chain reported that an Ethereum ICO whale had deposited 7,000 ETH, which is worth approximately $10.21 million, to Kraken.

Despite the recent deposit, the whale still holds 23,070 ETH, worth around $34.5 million, and has been offloading tokens during sharp price declines. The latest move appears to be bearish for its price in the short term.

When a whale deposits a large amount of an asset to a crypto exchange, it often signals that they may be preparing to sell, especially considering that this particular whale has been offloading tokens during price drops.

Ethereum Massively Undervalued

On a positive note, IntoTheBlock has reported that Ethers Market Value to Realized Value (MVRV) ratio has dropped to 0.87, representing its lowest point since December 2022. This metric indicates that the asset is currently undervalued.

A low MVRV suggests potential for a price recovery, as it reflects the possibility of accumulation among investors at discounted levels.