Ethereum’s brief upswing on Sunday was met with significant resistance at the $2,600 price, which triggered a bearish wave, pushing its price back to $2,360. While its price is demonstrating weakening momentum, reports show that several ETH key metrics have moved into positive territory.
A Positive Turnaround For Ethereum’s Market Dynamics
In a surprising turn of events, Ethereum’s Market Value to Realized Value (MVRV) indicator has turned bullish after weeks of trending bearish. Seasoned technical and on-chain expert Ali Martinez reported the development in a recent post on the X (formerly Twitter) platform, marking a crucial shift in ETH’s market dynamics.
The MVRV indicator’s move into positive territory suggests increased realized gains are currently being seen by investors who purchased ETH at cheaper levels. Interestingly, this shift comes even as overall crypto market performance displays signs of fatigue, indicating that new buying activity is likely to emerge.
According to the on-chain expert, the development is a strong sign that momentum is presently in favor of the bulls. Should the indicator persist within a positive zone, it could spark optimism toward Ethereum, potentially setting the stage for its next upward move.
Ali Martinez also pointed out a bullish performance among large ETH investors or whales, supporting the shift in momentum. Data from the Ethereum Balance By Holder Value metric shows that whale investors holding between 10,000 and 100,000 ETH have been persistently accumulating the altcoin in the past 1 month.
During this period, these big holders have accumulated more than 450,000 ETH. Such a substantial accumulation from this cohort is a sign of high-net-worth investors’ strong conviction and interest in the asset’s long-term prospects.
Another key indicator supporting the momentum shift and hinting at improving market dynamics is the Ethereum Balance on Exchanges, a key metric that measures ETH’s movement on crypto exchanges. Martinez’s report reveals that almost 1 million ETH have been withdrawn from crypto exchanges.
Data shows that investors have been withdrawing their coins from exchanges in the past 1 month, signaling a reduction in selling pressure and a strategic move by investors. If the trend continues, it might serve as a precursor for another upside move in price as confidence in the altcoin grows.
ETH’s Next Hinges On This Key Level
While the improvements in several crucial metrics could positively influence ETH’s price, Ali Martinez has underlined a key level that may trigger its next rally. After examining the MVRV Extreme Deviation Pricing Bands, the expert highlighted that Ethereum could surge to the $3,100 price mark as long as it holds above $2,200.
When the altcoin reaches and breaks above the $3,100 level, Martinez foresees a possible rally extension to $4,000 as bullish momentum builds. With on-chain metrics demonstrating robust growth and support levels holding, ETH might be preparing for a new bull market phase.
Featured image from Getty Images, chart from Tradingview.com
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