The recent price surge of Ether has captured the crypto market’s attention, with the token gaining 7% in value over the past 24 hours. Trading at $3,387, ETH upward trajectory has analysts speculating that this could be the start of a larger rally. Popular crypto analyst Ali Martinez highlighted on X that in every bullish cycle, the cryptocurrency has historically traded above the 3.2 MVRV (Market Value to Realized Value) Pricing Band—a level currently at $7,000.
Martinez’s analysis suggests Ethereum remains significantly undervalued, echoing sentiments across the crypto community. Experts have noted on social media platforms, “ETH is going to shock a lot of people soon. The fear and uncertainty are merely fuel for the fire.”
The MVRV metric, a critical tool for assessing market conditions, compares an asset’s market value to its realized value. Higher MVRV values typically indicate overvaluation, while lower values signal undervaluation. Ether is currently trading at the 1.6 MVRV Pricing Band, with its last appearance above the 3.2 band occurring in May 2021—months before its all-time high of $4,891 in November of that year.
Ethereum’s fundamentals also support a bullish outlook. The token’s market capitalization stands at $407 billion, with a 24-hour trading volume doubling to $67 billion. Meanwhile, exchange reserves for ETH are at their lowest levels since 2022, reflecting reduced selling pressure and a shift toward self-custody as investors focus on long-term potential.
Unlike Bitcoin, which has seen significant sell-offs by long-term holders around the $100,000 mark, Ether’s long-term investors have shown remarkable resilience. Their holdings have remained steady over the past year, a testament to their confidence in the asset’s future.
Additionally, Ether’s technical patterns signal further growth. Since mid-December, ETH has been forming a falling wedge, a chart pattern often associated with upward breakouts. Experts suggest that a sustained break above the $4,000 resistance level could trigger a major rally. Notable analyst Poseidon has even predicted a $5,000 price for Ether by the end of January.
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