What Does Ethereum Historical Data Says About Its Price Now?
Ethereum (ETH) price climbed above $4,000 again on Monday, December 16, and historical data suggests that this return could be the start of a long-term bull market. The development comes as several analysts believe ETH could follow in Bitcoin’s footsteps after it hit yet another all-time high.
But will these optimistic predictions hold true? this On-chain analysis Research key historical data influencing Ethereum price trends.
Ethereum investors are back in “faith” mode
According to Glassnode, The return of Ethereum To $4,000 improved sentiment towards the cryptocurrency among long-term holders (LTH). In understanding the current sentiment on ETH, BeInCrypto assessed Long Term Holders Net Unrealized Profit/Loss (LTH-NUPL),
LTH-NUPL evaluates the behavior of investors who hold cryptocurrencies for more than 155 days. The indicator is divided into sections: Surrender (red), Hope (orange), Optimism (yellow), Faith (green), and Euphoria (blue).
Judging from Ethereum’s historical data, capitulation represents a bear market, and in most cases, Ethereum’s price does not rise significantly during this period. The phase between hope and optimism highlights the exit from a bear market, while belief signals the end phase of a bear market. early bull market stage. Finally, euphoria indicates when a cryptocurrency is nearing a cycle top.
As shown above, Ethereum’s LTH-NUPL is currently located at Belief area, indicating that the price of ETH may have room to rise further. In past cycles, Ethereum makes huge gains After entering Euphoria district. ETH is still at Belief stage, the cryptocurrency could climb above $4,000 in the coming weeks.
The market value to realized value (MVRV) ratio is another indicator supporting further gains for ETH. This ratio evaluates whether Cryptocurrencies are undervalued or overvalued by assessing its market profitability.
Generally, the higher the MVRV ratio, the more likely the holder is to sell. If it is low, it increases the chances of holding. According to data from Santiiment, Ethereum’s 30-day MVRV ratio is 8.73%, down from 22.61% reached in March.
This shows that ETH is still close to being undervalued and reinforces the idea that it will be worth more in the coming weeks and months.
ETH Price Prediction: It’s time to get closer to $5,000
Ethereum price continues to hold firm Support on the daily chart lies near $3,075, a level that played a key role in driving the recent rally. ETH also broke above the $4,003 resistance, indicating continued bullish momentum.
The Bull and Bear Power (BBP) indicator, which measures the strength of buyers relative to sellers, remains in positive territory, reinforcing the uptrend.
If this trend continues, bulls’ dominance suggests that ETH price could climb towards $4,400. However, if the bears regain control, ETH may reverse its gains and fell towards the $3,578 level.
Disclaimer
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