Ethereum has fallen to a six-week low, slipping under the $4,000 level amid broader market weakness. 

The altcoin king’s price is now at $3,938, showing that bearish momentum continues to dominate. Despite the decline, certain on-chain signals suggest that this downturn may present a buying opportunity.

Ethereum Investors Have An Opportunity

New address creation on the Ethereum network has slowed significantly, with activity hitting a near-monthly low. This decline signals waning interest from potential investors, who are hesitant to enter the market while volatility remains high. Without fresh participation, Ethereum struggles to generate upward momentum.

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The lack of new entrants into the ecosystem highlights a concerning slowdown in demand. Fresh inflows typically provide crucial support for long-term rallies, as more users adopting the asset can bolster network growth. 

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On the other hand, Ethereum’s MVRV ratio presents a more optimistic outlook. The metric currently places ETH within the opportunity zone, which ranges from -9% to -30%. Historically, this zone has marked points where reversals often occur as losses prompt accumulation.

When profits fade and holdings slip into losses, investors tend to hold or buy at lower levels instead of selling. This behavior often creates the base for a recovery. As ETH remains in this zone, the probability of renewed demand building up is significant, even amid bearish pressure.