Ethereum (ETH) price is currently exhibiting some interesting patterns, especially after Bitcoin (BTC) reached a new all-time high, boosting the entire crypto market. This surge helped ETH surge nearly 10% in a single day, suggesting potential for further gains.
The 7-day MVRV ratio and recent accumulation by whales indicate growing confidence among investors. Historical trends suggest that Ethereum could face a correction at these levels. However, bullish sentiment could boost the asset a bit further before that happens.
MVRV reveals an interesting pattern
The 7-day MVRV (Market Value to Realized Value) ratio for Ethereum (ETH) is currently at 10.21%. This indicator helps assess whether an asset is overvalued or undervalued compared to its historical price base.
Essentially, MVRV measures the average profit or loss of holders who purchased ETH over the past seven days.
Read more: Ethereum (ETH) Price Prediction – 2024/2025/2030
ETH 7D MVRV. Fonte: Santiment
Historically, Ethereum’s price corrects when the MVRV exceeds 8%, indicating that the asset may be overbought. However, there have also been instances where it has needed to reach even higher levels before a correction occurs—such as in May, when it rose to 16%.
Currently, with the indicator above 10%, there is a risk of a correction, but several factors could delay this outcome. Given ETH's strong correlation with Bitcoin and the bullish momentum, it is possible that the asset will continue to rise before we see a significant pullback.
Ethereum Whales Are Modestly Accumulating
Since October 30, the number of addresses holding at least 1,000 ETH has been steadily increasing. From October 30 to November 6, this number grew from 5,524 to 5,534.
While this may not seem like a significant jump, it is still relevant as it indicates renewed confidence among some whales, who have started to accumulate more ETH.
Addresses with balance >= 1 thousand ETH. Source: Glassnode
While the current number of whale addresses is still far below what it was a few months ago, the recent increase could be an early indication that whales are gaining confidence in ETH again. This accumulation could suggest that they are anticipating further price increases in the near term.
Price prediction: a further 32% increase?
The EMA lines currently indicate a bullish setup, driven by BTC’s new all-time highs. The short-term line has crossed above the long-term one, forming a “golden cross.”
This crossover is generally seen as a positive sign by traders, suggesting that momentum is shifting in favor of the bulls.
Read more: Ethereum ETFs – Understand what they are and how they work
ETH EMA and Support and Resistance lines. Source: TradingView
After rising nearly 10% in a single day, if this momentum continues, the price of ETH could rise significantly, testing the resistance level around $3,400. Such a move would represent a 32% jump from current levels.
However, if a downtrend emerges and a correction occurs before testing this resistance, Ethereum could first test the support levels at $2,574 and $2,378.
The article Ethereum (ETH) Bullish Setup Indicates 32% Upside Potential appeared first on BeInCrypto.
