So far, Ethereum appears to be showing signs of an impending bullish run, according to Crypto Tony, a renowned analyst in the crypto space. Crypto Tony suggests that Ethereum’s journey to bullish momentum could commence if it successfully maintains its position above the crucial level of $2,130.
Fortunately, the asset trades above this price level and appears to be climbing further above it, with its current trading price of $2,264 at the time of writing.
Key Levels For Major ETH Rally
The $2,130 price mark, as disclosed by Crypto Tony, is seen as a pivotal point for Ethereum, as maintaining this level could signal “strength and stability,” setting the stage for further gains.
This optimism further escalates should Ethereum reclaim the range high at $2,500, a price level Crypto Tony revealed that would reinforce the bullish sentiment in the Ethereum market. Notably, Crypto Tony’s bullish outlook aligns with the sentiments of other analysts in the crypto community.
The ETH range is simple. Remain above $2,130 and we are bullish .. Reclaim the range high at $2,500 and we are really bullish pic.twitter.com/YKOph2YbRY
— Crypto Tony (@CryptoTony__) January 8, 2024
For instance, Ali Chart, another notable crypto analyst, has identified $3,830 and $5,100 price levels as Ethereum’s following major targets based on the Market Value to Realized Value (MVRV) price bands.
For context, MVRV is a key on-chain metric or indicator that compares a cryptocurrency’s market value (market cap) to its realized value, offering an alternative approach to assess the network’s valuation by considering the price at which each unit last moved.
The MVRV ratio is a crucial indicator that can be utilized especially for gauging the relative valuation of a crypto asset like ETH. When the MVRV ratio is high, it often suggests that the cryptocurrency’s price may be overvalued, and when it’s low, the asset could be undervalued.
— Ali (@ali_charts) January 1, 2024
According to a chart recently shared by Ali Chart on X, Ethereum is currently on an upward trajectory, with the next significant MVRV Pricing Bands at 2.4 and 3.2. These levels indicate that Ethereum may become overvalued, correlating to Ali’s price targets for Ethereum at around $3,830 and $5,100, respectively.
Ethereum Whale Movements Backs Bullish Sentiment
Adding to the bullish sentiments are recent whale movements. Spot On Chain has disclosed that an Ethereum whale, identified as ‘0x931’, made a significant purchase of 21,192 ETH, valued at approximately $48 million, at an average price of $2,265.
This accumulation of ETH is a strong indicator of confidence in Ethereum’s future performance, as the whale has now held roughly 79,500 ETH since January 2023, sitting on an unrealized profit of $36.84 million.
Moreover, last week’s on-chain data from Santiment revealed that Ethereum’s largest private wallets now hold a record 56.25 million ETH, representing 46.8% of the crypto’s total circulating supply. This concentration of ETH in large wallets could be interpreted as a sign of long-term holding strategies among major investors.
Amid these developments, Ethereum has been showing signs of recovery from its recent retracement. Despite a week of decline, the altcoin is beginning to exhibit an upward trajectory, with a near 2% increase in the past 24 hours, trading at around $2,272.
This recovery is further evidenced by a surge in trading volume, which has surged from a low of $11 billion last Monday to over $20 billion, indicating a possible increasing buying activity.
Featured image from Unsplash, Chart from TradingView