Ethereum (ETH) price is currently 19% below its all-time high and could reach $4,000 for the first time since March 2024. Key indicators such as rising 7-day MVRV and increasing whale stocks highlight growing global bullish sentiment. Ethereum.
If ETH breaks through the $4,000 level, it could begin a surge towards the previous high of $4,867, but failure to sustain this rally could result in a retest of the key support level.
ETH 7D MVRV Shows Ethereum Price Could Rise Further
Ethereum’s 7-day MVRV rose to 6.1%, a significant increase from 0.28% just two days ago. This sharp increase reflects increased unrealized gains for short-term holders and signals growing market optimism. Historically, corrections have often occurred when ETH's 7-day MVRV approaches these levels.
However, there have been instances where MVRV levels widened to 7% and even 13% before significant declines, suggesting there may be more room in the current bull market.
ETH 7D MVRV. Source: Santiment
MVRV (market value to realized value) measures the ratio of an asset's market value to realized value and provides insight into whether the holder is making a profit or losing money. A high MVRV indicates increased unrealized gains, which can lead to selling pressure, while a low value indicates undervaluation.
ETH’s 7-day MVRV is still below 7%, and unless sentiment remains bullish and selling pressure intensifies prematurely, the data points to further price upside before a correction occurs.
Ethereum whales are accumulating large amounts of ETH
The number of wallets holding at least 1,000 ETH hit a three-month low of 5,524 on October 30, but the trend has since reversed, showing new accumulation. By November 3, the index had risen to 5,599, its highest level since October 6.
This increase suggests that large holders, i.e. whales, are re-entering the market and may signal increased confidence in the Ethereum price.
Addresses with a balance of 1,000 ETH or more. Source: Glassnode
Tracking whale activity is very important as these large holders often control large amounts and therefore have the power to influence market trends.
The recent increase in wallets holding at least 1,000 ETH may indicate bullish sentiment among major investors. That could push prices higher further. If this accumulation trend continues, it could lay the foundation for sustained upward momentum in ETH price.
ETH price prediction: Will it hit new highs soon?
The current uptrend in Ethereum price is indicated by the EMA line, and a breakout of the $4,000 level could start a new rally. That could potentially test the all-time high of around $4,800, as IntoTheBlock senior researcher Juan Pellicer explained.
“Ethereum has strong potential to break above the $4,000 level, supported by key factors including record institutional investor inflows into Ethereum ETFs, significant whale accumulation, and increased interest in staking-enabled ETF products.” At the same time, the increase in layer 2 transaction volume and DeFi “With the increase in TVL, Ethereum is poised to challenge the all-time high of $4,867 in the near term,” Pellicer told BeInCrypto.
ETH price analysis. Source: TradingView
On the other hand, if the current uptrend is not strong enough and ETH price fails to break or sustain above $4,000, it may test support zones near $3,688, $3,500, or even $3,255.
Disclaimer
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