Ethereum (ETH) is nearing the critical $4,000 mark for the first time since March 2024, currently sitting 19% below its all-time high. Key metrics, including a rising 7-day MVRV and increased whale accumulation, highlight growing bullish sentiment in the market.
If Ethereum successfully breaks the $4,000 level, it could rally toward its previous all-time high of $4,867. However, failure to sustain the rally might lead to a retest of key support levels.
7-Day MVRV Indicates Potential for Further Price Growth
The 7-day MVRV (Market Value to Realized Value) for Ethereum has surged to 6.1%, a significant increase from 0.28% just two days ago. This spike reflects growing unrealized profits among short-term holders and bolsters market optimism.
Historically, when ETHโs MVRV approached these levels, it often led to corrections. However, in some cases, MVRV climbed to 7% or even 13% before a significant downturn, suggesting the current rally could have more room to grow.
MVRV measures whether holders are in profit or loss:
High MVRV signals increased unrealized profits, which may trigger selling pressure.Low MVRV suggests undervaluation.
With the current MVRV below 7%, the data suggests room for further price appreciation, provided bullish sentiment remains strong and selling pressure doesnโt intensify prematurely.
Whales Are Accumulating Ethereum
The number of wallets holding at least 1,000 ETH hit a three-month low of 5,524 on October 30, but has since rebounded. By November 3, this figure rose to 5,599, the highest since October 6.
This rebound indicates that large holders, or whales, are re-entering the market, signaling growing confidence in Ethereumโs price potential.
Whale activity plays a crucial role, as their movements can significantly influence market trends.Increased whale accumulation often signals bullish sentiment, potentially supporting further price growth.
If this trend continues, it could provide a strong foundation for sustained upward momentum in ETHโs price.
ETH Price Prediction: A New All-Time High Soon?
Ethereumโs current uptrend is supported by technical indicators like EMA Lines, which show a bullish trajectory. If ETH breaks past $4,000, it could initiate a new rally and test its previous high of $4,867.
According to Juan Pellicer, Lead Researcher at IntoTheBlock:
โEthereum has strong potential to break $4,000, driven by record institutional inflows into Ethereum ETFs, significant whale accumulation, and rising interest in staking-backed products. Additionally, increasing transaction volumes on Layer 2 and growing DeFi TVL are setting the stage for Ethereum to challenge its old all-time high.โ
Risk of Correction
If Ethereum fails to sustain above $4,000, it could fall back to key support levels:
$3,688$3,500$3,255
Ethereumโs success depends on maintaining its current bullish trend and breaking through critical resistance levels.
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