Ethereum Market Update

Ethereum registered losses of 2.70% over the last 24 hours
As investors turn to buy the dip, Ethereum must reclaim $2,350 for a potential rally

Over the last two weeks, Ethereum (ETH) has seen extreme volatility, rising to a local high of $2,700, only to drop below $2,000 for the first time since November 2023.

The latest price fluctuation has left stakeholders with mixed opinions. Some, like crypto analyst Ali Martinez, remain optimistic, hinting at a potential rally to $3,260 based on pricing bands and the MVRV indicator.

Can Ethereum rally to $3,260 on the charts?

Martinez noted that $2,350 is the key resistance level for ETH. Breaking above this could generate buying momentum, pushing towards $3,260. This level could signal a bullish trend shift, encouraging investors to buy and take long positions.

Furthermore, with ETH’s MVRV indicating lower prices, it appears to be a prime buying opportunity, as history shows that such levels often yield returns since 2016.

The decline has prompted increased buying activity, evidenced by negative Ethereum Exchange netflows over the past four days, suggesting strong buying interest with more outflows than inflows.

Whale activity supports this trend, with over 932.79k ETH accumulated by whales in just one day. The significant spike in large holders’ netflows indicates stronger capital inflows than outflows, hinting at bullish sentiments from these major players.

Additionally, the rising funding rate to a weekly high of 0.01 indicates that traders are willing to pay fees to maintain long positions, further supporting a potential price rally.

What next for ETH’s price action?

In summary, both whales and retail investors are re-entering the Ethereum market. With sellers appearing exhausted, ETH could be positioned for recovery. If demand persists, ETH may reclaim $2,325 and aim for $2,700.

However, if bullish moves fail, the price may continue fluctuating between $2,114 and $2,300. For Martinez’s predicted levels to be realized, ETH must first break above $2,700 and $3,000, which seems unlikely in the short term unless macroeconomic conditions improve.