Ethereum experiences a 7% daily surge following Bitcoin’s new all-time high
MVRV ratio reaches 10.21%, historically indicating potential correction zone
Whale addresses show modest increase from 5,524 to 5,534 since October 30
The second-largest cryptocurrency by market capitalization is demonstrating notable price momentum, driven by Bitcoin’s recent record-breaking performance.
This market movement has propelled Ethereum to significant daily gains, sparking discussions about sustainability and future price trajectories.
Ethereum market metrics and whale behavior
Source: Santiment
The Market Value to Realized Value (MVRV) ratio for Ethereum currently stands at 10.21%, surpassing the traditional 8% threshold that typically signals correction territory.
Historical data suggests varying correction points, with May’s peak reaching 16% before a significant pullback occurred, indicating potential room for continued upward movement despite current levels.
Whale activity presents an intriguing development as addresses holding a minimum of 1,000 ETH increased modestly over a week-long period.
While the absolute increase appears minimal, this accumulation pattern suggests renewed confidence among significant market participants, though current whale address counts remain below previous periods’ highs.
Technical indicators reveal a favorable setup with exponential moving averages forming a golden cross pattern, traditionally interpreted as a bullish signal.
This technical formation, combined with broader market momentum, suggests potential for further price appreciation toward the $3,400 resistance level, representing a possible 32% increase from current valuations.
Supporting factors include Bitcoin’s continued strength and overall market sentiment, though traders remain cautious given historical correction patterns at similar MVRV levels.
Should bearish pressure emerge, key support levels at $2,574 and $2,378 could become critical testing points for maintaining market structure.
The interplay between technical indicators, whale behavior, and broader market dynamics creates a complex landscape for Ethereum’s short-term price action. While bullish momentum remains strong, historical metrics suggest careful monitoring of key levels and potential correction scenarios.
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