Ethereum Seeking $2,500 Support—Price Surge?
Ethereum (ETH) had a wild trading week with big gains and losses. Notably, a famous market expert has identified a vital market circumstance that might cause a market boom.
With altseason uncertainties, Ethereum's price behavior is crucial to traders as the second biggest cryptocurrency. An interesting ETH market analysis based on Glassnode's MVRV extreme deviation price bands was posted on X on March 7.
Market Value to Realized Value (MVRV) is used to identify asset overvaluation or undervaluation. MVRV pricing bands show asset value compared to past price movements. These bands indicate overbought or oversold circumstances with significant resistance and support zones.
Martinez's Glassnode data indicates that Ethereum's immediate obstacle in an ascent is the -0.5σ price zone around $2,350. When ETH bulls can generate enough demand to regain this support level, price advances may follow past market cycles.
Martinez suggests ETH's mean pricing range at $3,528 as the first rally goal, a 51.95% increase from its current market price. Further price gains are likely with strong bullish momentum, targeting the +1.0σ pricing zone at $4,164.
However, failing to recapture $2,350 support might deepen ETH's decline. Glassnode data suggests ETH might drop below $1,444, near the -1.0σ price zone.
Ethereum is down 1.89% in 24 hours to $2,134 at press time. Weekly losses of 4.77% and a 30-day decrease of 23.58% indicate ETH traders' negative stance.
Despite the price drop, Ethereum whales remain optimistic and accumulating. Martinez offered further statistics showing that these whales bought 1.1 million ETH in 48 hours, indicating their strong belief in Ethereum's price rise.
In other news, commentators continue to speculate about an altseason. Altseason is supported by crypto specialist Michael Van De Poppe, who encourages investors to invest in “blue-chip altcoins”. Former Binance CEO Changpeng Zhao recommended market aficionados to the CoinMarketCap altseason index, which is 14 in favor of Bitcoin.