Ethereum (ETH) continues to demonstrate remarkable strength, trading firmly above $2,600 after a powerful surge in buying pressure. This price action marks a decisive shift in market momentum, with bulls reclaiming control after months of bearish sentiment. The second-largest cryptocurrency has established several key support levels, suggesting potential for further upside.
As noted in recent analysis showing ETH targeting $2,850, Ethereum’s technical structure appears increasingly bullish. The latest MVRV (Market Value to Realized Value) data from Glassnode highlights a critical resistance zone at $3,100, which could determine the next major move.
MVRV Pricing Bands Signal Key Price Levels
According to respected analyst Ali Martinez’s examination of Ethereum’s MVRV Extreme Deviation Pricing Bands, the $3,100 level represents significant overhead resistance. This metric, which measures the ratio between market cap and realized cap, has historically provided reliable signals for potential price reversals and continuation patterns.
Technical Analysis and Price Targets
ETH currently trades at $2,604, having surged nearly 100% from its April lows. The daily chart shows ETH approaching the critical 200-day SMA at $2,702.60, coinciding with February’s local highs. A breakthrough above this zone could catalyze momentum toward the $3,100 MVRV resistance.
Support Levels and Risk Management
Key support now rests at $2,233, with additional backing from the 200-day EMA at $2,435.66. These levels should be watched closely for potential pullbacks. The recent rally’s strength suggests bulls remain in control, but traders should monitor volume and momentum indicators for signs of weakening.
FAQ
Q: What is the significance of the $3,100 MVRV resistance?
A: This level represents a key psychological and technical barrier where selling pressure historically increases, potentially capping price advances.
Q: How reliable are MVRV pricing bands as indicators?
A: MVRV bands have shown historical accuracy in identifying major trend reversals and continuation patterns, though they should be used alongside other indicators.
Q: What could trigger a breakthrough above $3,100?
A: Sustained institutional buying, improved market sentiment, or positive regulatory developments could provide the momentum needed for a breakout.