Ethereum Analysis: ETH Price Likely to Surge Another 32% Thanks to This

The price of Ethereum (ETH) is currently exhibiting some interesting patterns, especially after Bitcoin (BTC) recently reached a new all-time high, which has driven the entire cryptocurrency market. This price increase has helped ETH gain nearly 10% in a single day, indicating further upside potential.

The 7-day MVRV ratio and the recent accumulation by large investors suggest increasing investor confidence. Historical trends indicate that Ethereum may need to correct at these levels. However, the current bullish sentiment could push the price higher before that occurs.

The 7-day MVRV of ETH shows an interesting pattern

Ethereum's (ETH) 7-day MVRV (Market Value to Realized Value) ratio is currently 10.21%. This metric helps assess whether an asset is being overvalued or undervalued compared to its historical price basis. Essentially, the 7-day MVRV measures the average profit or loss of those who have purchased ETH in the past seven days.

History shows that Ethereum's price typically tends to correct when the 7-day MVRV exceeds 8%, indicating the asset may have been overbought. However, there have also been instances where it needed to reach higher levels before a correction occurred—such as in May, when it reached 16%.

Currently, with ETH's MVRV above 10%, there is a risk of a potential correction, but several factors may delay this outcome. Given ETH's strong correlation with Bitcoin and the broader market's positive momentum, Ethereum may continue to rise before we see a significant correction, allowing its MVRV to increase further in the near term.

Ethereum whales are accumulating... but modestly

Since October 30th, the number of addresses holding at least 1,000 ETH has been steadily increasing. From October 30th to November 6th, this figure has risen from 5,524 to 5,534. While this may not seem like a significant jump, it is noteworthy as it suggests a restoration of confidence among some large Ethereum investors, who have begun to accumulate more ETH.

Monitoring the activity of large investors is crucial, as whales often have the ability to influence the market. When large investors accumulate, it can be a sign that they expect the asset to appreciate, potentially driving optimism among smaller investors.

Although the number of whale addresses is still significantly lower than a few months ago, the recent increase may be an early sign that large investors are regaining confidence in ETH. This accumulation could suggest they anticipate a short-term price increase, positioning themselves ahead of potential market developments.

ETH Price Prediction: A New Upleg of 32%?

Ethereum's current EMA (Exponential Moving Average) configuration suggests a bullish price structure, driven by BTC's new all-time high. The short-term EMA has crossed above the long-term EMA, forming a "golden cross." This is often seen as a positive signal by traders, indicating that momentum is shifting towards optimistic investors.

After gaining nearly 10% in a single day, if this momentum continues, the ETH price could see a significant increase, potentially challenging the resistance level around $3,400. This would represent a 32% rise from the current level. However, if a bearish trend emerges and a correction occurs before testing this resistance level, ETH may first test the support levels at $2,574 and $2,378.

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