The price of Ethereum (ETH) has increased by 46.11%, marking an impressive growth, but it is still the second-worst performing currency among the top 10 largest cryptocurrencies. The recent price increase has been supported by the accumulation of whales and the 7-day MVRV index, which indicates a neutral to slightly optimistic sentiment.

However, the crucial resistance level at $3,600 may determine whether ETH will continue its upward trend to reach $4,000 for the first time since December 2021. Conversely, if it reverses, it could lead to a significant correction, with strong support at $3,000 and a potential drop to $2,359 if the selling pressure increases.

ETH 7D MVRV shows an important threshold

The current Ethereum 7-day MVRV is 3.8%, indicating a neutral to slightly optimistic position regarding short-term profit-taking behavior. The 7-day MVRV compares the market value to the actual value of the coins moved in the past seven days, providing insights into the recent traders' profitability.

When the 7-day MVRV is low, it suggests that traders are holding at a loss or minimal profit, reducing the selling pressure, while higher values indicate an increased risk of profit-taking.

History shows that ETH often struggles to maintain its upward momentum when the 7-day MVRV is around 5-7%, usually triggering corrective periods. However, the recent increase to 13% before a 10% correction suggests that breaking through this zone could drive a more sustainable uptrend.

If the 7-day MVRV crosses the 7% threshold again, ETH price could experience a significant increase, potentially surpassing 10%, as optimism grows and traders refrain from taking profits to wait for further price appreciation.

Ethereum whales are back

The number of Ethereum whales holding at least 1,000 ETH is nearing the monthly high of 5,561, currently at 5,557. Monitoring whale activity is crucial, as these large holders can significantly influence market trends through their buying and selling behavior.

An increase in the number of whales often signals growing confidence in the asset, supporting price stability or upward momentum, while a decline may indicate reduced interest and potential selling pressure.

After increasing from 5,527 to 5,561 in 6 days, the number of whales decreased to 5,535 on November 20, indicating a period of short-term profit-taking or reduced accumulation. However, the recent recovery to 5,557 within a week reflects renewed interest and accumulation from large investors.

This recovery suggests growing optimism in the market, which could support Ethereum price stability and pave the way for further growth if this trend continues.

ETH Price Prediction: Can it return to $4,000?

If Ethereum maintains its current uptrend, it may soon test the resistance level at $3,600, an important threshold to sustain the upward momentum. Breaching this resistance level would bring the Ethereum price just 11% away from regaining the $4,000 mark, a level it has not reached since December 2021. This move could further fuel optimism and attract buying interest, reinforcing the uptrend.

However, if the uptrend slows down and reverses, the ETH price will have strong support at $3,000, an important level to prevent a significant decline. If this support level fails, the price could drop as low as $2,359, marking a potential 31% correction from the current level.

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