Ethereum Confirms $1,800 Support...Riding MVRV Golden Cross, Aims for '$3,000'

▲ Ethereum (ETH)/AI Generated Image

Ethereum (ETH) has turned a key on-chain price level into a support line, bringing back a bullish scenario targeting $3,000.

Cryptopotato reported on August 6 (local time) that crypto analyst Ali Martinez predicted a rise to $3,000 for Ethereum, based on its breakthrough of the Market Value to Realized Value (MVRV) price band. Martinez stated, "Ethereum is heading towards $3,000."

The starting point for this bullish shift is the 0.8 MVRV price band, located at approximately $1,800. Martinez analyzed that Ethereum broke through this range and secured it as a support line. In the past, $1,800 also served as a benchmark for bearish trends to shift into recovery. Over the last six years, similar recovery signals have often led to Ethereum rising to or surpassing its realized price. The current realized price is estimated at approximately $2,300.

A golden cross that occurred in the Market Value to Realized Value momentum indicator also supported the bullish outlook. In the past, after similar signals, Ethereum surged by 50%, 166%, 74%, and 113%, respectively. This indicator tracks the transition from a sell-off phase to a recovery phase by comparing the profitability of Ethereum holders with its 160-day moving average.

However, $3,000 represents a strong supply zone. According to on-chain transaction data, over 10 million ETH changed hands at this price level in the past. This means it is a critical resistance level where existing holders might engage in a sell-off even if buying pressure continues. Martinez suggested the initial hurdle is the $1,980 to $2,080 range, after which a break above $2,773 would signal a serious challenge towards $3,000.

Crypto trader Ted Pillows analyzed that if Ethereum maintains $1,800 after an 18.5% rise in July, it could climb to $2,000. Crypto analyst Michaël van de Poppe also stated that if the $1,800 support holds, Ethereum could move past $2,000 and head towards $2,300. Martinez's $3,000 forecast is predicated on maintaining the MVRV breakout and sequentially breaking through key resistance levels.

[Article Key Summary]

-Ethereum broke through the 0.8 MVRV price band at approximately $1,800 and secured it as a support line.

-Past gains after an MVRV momentum golden cross ranged from 50% to a maximum of 166%.

-If Ethereum surpasses $1,980-$2,080 and $2,773, then $3,000 is presented as the next major target.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*