'Can Ethereum rise further? Is it too late to jump in now? Or is this just a 'final washout' before the big breakthrough at $5,000?'—When you see a slight pullback after ETH's continuous rise, do you also ask yourself this question?
In the past month, Ethereum (ETH) has surged an astonishing 55.17%, becoming one of the most outstanding performers among the top ten cryptocurrencies by market capitalization. However, just as many investors began to feel optimistic, it pulled back by 2.47%. Does this mean the upward trend has come to an end? In fact, quite the opposite.
According to AMBCrypto analysis, this slight pullback is likely just a healthy technical adjustment, rather than the end of the trend. More importantly, there are three major catalysts pushing ETH towards a new high of $5,000.
1. On-chain indicators: MVRV ratio releases 'buy' signal
The Market Value to Realized Value ratio (MVRV) is a key on-chain indicator used to measure the relationship between the current price and the average purchase cost of investors. Recent data shows that ETH's MVRV ratio has jumped from negative territory to positive, and the technical chart has shifted from red to blue, indicating that ETH has emerged from the 'undervalued' area and entered a phase of active capital accumulation.
This shift from negative to positive has historically often signaled that a new upswing is about to come. In fact, even during the 24 hours of the pullback, ETH's price fluctuations have been quite mild, showing that market sentiment remains robust, selling pressure is not strong, and it leaves room for the next wave of increase.
2. Injection of traditional financial power: ETF liquidity has exceeded $9.5 billion
The second major engine driving ETH towards new highs is the large-scale entry of traditional financial institutions. With the continuous approval of spot ETFs, mainstream capital is reallocating assets, and ETH is one of the biggest beneficiaries.
Currently, the asset management scale of ETH-related ETFs has reached $9.5 billion, with a net inflow of $77 million in just the past two days. This is not a one-time benefit but a continuous trend of liquidity entering the market. When these heavyweight capitals 'change lanes' to ETH, they not only bring funds but also confidence and a guiding signal.
3. Capital rotation phenomenon: ETH/BTC ratio has surged significantly
The third key catalyst comes from a change in the direction of capital flow—ETH is gradually replacing BTC as the preferred choice for mainstream capital. The ETH/BTC trading pair has surged by 41% in the past eight days, with a trading volume exceeding 493,960 ETH.
This represents a liquidity rotation from Bitcoin to Ethereum. Such trends often appear in the early stages of a cycle transition—when BTC's gains slow down in the short term, a large amount of speculative capital will look for a new 'carriage', and ETH has the potential to be repriced.
From a trend perspective, if ETH can continue to attract liquidity, it will be more likely to explode than Bitcoin. This phenomenon can be deeply analyzed through Mlion.ai's AI research report function by integrating social media sentiment, on-chain data, historical trends, and other dimensions to provide more insightful judgments.
There is resistance, but a key breakthrough may not be far away.
Of course, the road to rising prices is not always smooth. Currently, the chart shows that ETH faces three key resistance levels: $2,756.30, $3,389.86, and $4,093.57.
ETH is currently in the testing phase of the first resistance level. Once it successfully breaks through, market momentum is expected to be reactivated, pushing it towards the second and third resistance levels, ultimately achieving the critical leap towards $5,000.
Conclusion: This is the 'starting point of the run', not the 'finish line'.
The target of $5,000 may sound a bit aggressive, but from on-chain data, market capital flows, to the return of traditional capital forces, all key indicators are releasing a common signal: Ethereum's current rise is not driven by short-term sentiment, but is supported by deep underlying logic.
Truly smart investors do not wait until 'everyone believes' before entering the market; instead, they use intelligent tools like Mlion.ai to gain early insights into trends, leveraging AI-driven price predictions, on-chain behavior analysis, and AI chart interpretation functions to grasp the prelude to market movements.
A bull market is not completed in one day, but opportunities often belong to those who are well prepared in advance.
Disclaimer: The above content is for informational sharing only and does not constitute any investment advice! Investment carries risks; proceed with caution!