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- Ethereum recently surged 34%, and continued whale accumulation and shrinking exchange balances are raising the possibility of further gains.
- To extend the rally, Ethereum must break through the strong supply zone of $2,722 to $2,970, where about 16.7 million ETH was bought.
- Martinez said Ethereum could rise to $5,363 if it breaks above $2,722 to $2,970, while a failed breakout could lead to a pullback to $2,235.
Forecast Trend Report by Period
Ethereum has jumped 34% in recent days, and continued accumulation by large holders alongside shrinking exchange balances is fueling expectations of further gains.
Crypto analyst Ali Martinez wrote on Aug. 23 that Ethereum’s market value-to-realized value, or MVRV, ratio formed a golden cross on Aug. 19 when it moved above its 160-day moving average. Ethereum then climbed about 34%, from $1,905 to as high as $2,547.
Whale accumulation has also accelerated. Over the past week, the number of addresses holding more than 10,000 ETH rose by 17, a 1.74% increase. During the same period, 180,764 ETH left exchanges. That is worth about $440 million and suggests readily available selling supply is falling while buying pressure builds.
Ethereum still needs to clear a heavy supply zone between $2,722 and $2,970 to extend its advance. URPD data show about 16.7 million ETH was previously bought in that range, raising the possibility that holders may sell into further gains.
Martinez said a break above the $2,722 to $2,970 range could send Ethereum toward $5,363, the next major MVRV pricing band. If the token fails to overcome that resistance, it could pull back toward its realized price of $2,235 before attempting another advance.
“Ethereum needs to get through the $2,722 to $2,970 range to head toward $5,000,” he said.
Source: en.bloomingbit.io