- Ethereum (ETH) jumps past $4,000, signaling potential for a sustained bull phase.
- Long-Term Holder sentiment enters the “belief” zone, historically a bullish sign.
- 30-day MVRV ratio at 8.73% suggests ETH is still undervalued.
- If bullish momentum holds, ETH could target $4,400; a pullback might drop it to $3,578.
Ethereum is back in the spotlight. On December 16, ETH surged past $4,000, sparking excitement that this could be the start of a long-awaited bull run.
https://twitter.com/rovercrc/status/1868743398024237373
Historical data is backing up this optimism, with key indicators showing that ETH might have more room to grow. But can Ethereum keep this momentum, or is a reversal around the corner?
Let’s take a closer look.
Investors Are Feeling the ‘Belief’
Ethereum’s price climb to $4,000 has shifted investor sentiment, especially among long-term holders (LTH). According to data from Glassnode, Ethereum’s Long-Term Holder Net Unrealized Profit/Loss (LTH-NUPL) metric has entered the “belief” zone.
What does this mean?
The LTH-NUPL metric measures how profitable long-term holders are feeling. It has several phases:
- Capitulation (red): Bear market, heavy losses.
- Hope (orange): Early signs of recovery.
- Optimism (yellow): Moving out of the bear market.
- Belief (green): The start of a bull market.
- Euphoria (blue): Nearing the peak of a cycle.
Right now, Ethereum is in the belief phase, which historically signals the beginning of a bull market. In previous cycles, when ETH moved from belief to euphoria, prices saw significant gains. If this pattern holds, Ethereum could be gearing up for a bigger run past $4,000 in the coming weeks.
Is Ethereum Still Undervalued?
Another key metric pointing to Ethereum’s potential is the Market Value to Realized Value (MVRV) ratio. This metric helps determine if ETH is undervalued or overvalued based on how profitable holders are.
https://twitter.com/EthereanVibin/status/1868407794799653318
Currently, Ethereum’s 30-day MVRV ratio is at 8.73%, according to Santiment.
This is much lower than the 22.61% recorded in March, meaning there’s still room for growth before investors feel the need to sell and take profits. In other words, ETH might still be undervalued — a sign that prices could climb even higher.
What’s Next for Ethereum’s Price?
ETH has been holding strong support around $3,075, which helped fuel its recent rally. It also smashed through the key resistance level of $4,003, a bullish sign that buyers are still in control.
The Bull Bear Power (BBP) indicator, which measures the strength of buyers compared to sellers, is still showing green. This suggests the bulls aren’t done yet.If this momentum continues, Ethereum could soon be testing $4,400. But it’s not all smooth sailing — if the bears step in, we could see ETH fall back to $3,578.