Ethereum (ETH) price is now 19% below its all-time high, with the possibility of reaching $4,000 for the first time since March 2024. Key metrics, including rising 7-day MVRV and accumulation accumulation of major investors, is highlighting the growing optimism surrounding ETH.
If ETH breaks above $4,000, it could begin a strong rally towards its previous high of $4,867, although failure to maintain this momentum could mean a retest of key support levels. .
ETH’s 7-Day MVRV Shows Price Could Move Higher
Ethereum’s 7-day MVRV has increased to 6.1%, up significantly from 0.28% just two days ago. This sharp increase reflects growing unrealized profits among short-term investors, indicating growing market optimism. History shows that when ETH 7-day MVRV reaches these levels, it usually results in a correction.
However, there have been cases where MVRV expanded up to 7% and even 13% before any significant correction, which suggests that the current rally could extend further.
MVRV (Market Value to Realized Value) measures the ratio between the market value of an asset and its actual value, providing information on whether investors have made a profit or a loss. Higher MVRVs indicate increased unrealized profits, which can lead to selling pressure, while lower values indicate undervaluation.
With ETH’s 7-day MVRV still below 7%, the data suggests further upside potential before a correction occurs, as long as market sentiment remains bullish and selling pressure does not increase too soon.
Ethereum Whales Are Accumulating ETH Heavily
The number of wallets containing at least 1,000 ETH hit a three-month low of 5,524 on October 30, but has since reversed, indicating a return to accumulation. By November 3, this number had increased to 5,599, the highest value since October 6.
This increase shows that large investors, or whales, are returning to the market, potentially signaling growing confidence in the price of Ethereum.
Tracking whale activity is important because these large investors often have the ability to influence market trends due to their significant holdings.
The recent increase in the number of wallets with at least 1,000 ETH may indicate bullish sentiment among large investors. That is likely to support further price increases. If this accumulation trend continues, it could lay the foundation for a sustained increase in ETH price.
ETH Price Forecast: A New High in the Near Future?
The current bullish momentum of Ethereum price is shown by its EMAs, and if it can break above $4,000, a new rally could begin. It could then test the previous all-time high, around $4,800, as explained by Juan Pellicer, Senior Researcher at IntoTheBlock.
Ethereum is showing strong potential to surpass $4,000, supported by key drivers such as record institutional inflows into Ethereum ETFs, strong whale accumulation, and growing interest in Ethereum. Increased interest in ETF products that enable staking. At the same time, rising layer 2 trading volume and rising DeFi TVL are creating the foundation for Ethereum to challenge its old high of $4,867 in the short term,” Pellicer told TinTucBitcoin.
Conversely, if the current bullish momentum is not strong enough and ETH price fails to break or sustain above $4,000, it could test the support zones around $3,688, $3,500, and even $3,255.
