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Ethereum could target $5,363 after breaking its current resistance, but a pullback toward the $2,235 realized price first remains possible.
ByChayanika Deka
Ethereum saw one of its biggest weekly moves in years after staging an impressive 30% rally. The altcoin crossed $2,500 briefly, then slipped back slightly below that level.
New data shared by crypto analyst Ali Martinez suggests that ETH could be on a path toward $5,000 if it clears a major resistance zone.
Growing Buying Pressure
On August 19, Ethereum’s MVRV Ratio formed a golden cross above its 160-day moving average. Martinez also pointed to stronger whale accumulation. The number of addresses holding more than 10,000 ETH has increased by 1.74%. In fact, 17 new whale addresses joined the network over the past week.
At the same time, the token supply is moving off exchanges. More than 180,764 ETH, which is worth about $440 million, has been withdrawn over the past week. Martinez said the trend supports the case for increasing buying pressure.
However, it still faces a major resistance zone between $2,722 and $2,970. URPD data shows that 16.70 million were previously acquired within this range, which makes it a major supply wall. If Ethereum breaks through the zone, the next major MVRV Pricing Band is near $5,363, at the 2.4 level. The analysts also noted that a rejection could first send the altcoin back toward the Realized Price near $2,235 before a potential move toward the 2.4 MVRV band.
Besides, Ethereum has once again reached its 200-week moving average, which happens to be the 11th such instance over the past five years, ‘The Long Investor’ found, who pointed to a repeated pattern in the crypto asset’s price history. Each time it has moved below the 200 WMA, it has later returned to the moving average.
The analyst therefore called any percentage below the level “free money” and said investors cannot lose.
Source: cryptopotato.com