Despite a 6% weekly price drop causing panic in Ethereum (ETH) 
$2,358 markets, leading analysts foresee a rebound. Analyst Ali Martinez views this pause as a sign of a strong rally, suggesting that ETH could aim for $4,000 in the short term. He bases his optimism on signals such as the rising MVRV ratio, the continuous growth of whale wallets, and rapid ETH withdrawals from exchanges. As long as the market maintains the $2,200 support, expectations for a rally remain strong.
Whale Movements Signal Strong Growth in Altcoin
In the past 30 days, major wallets have accumulated around 450,000 ETH, indicating that “smart money” sees price declines as buying opportunities. Such significant purchases typically ease selling pressure, providing a bullish foundation for the market. On-chain data confirms that over a million ETH have been withdrawn from exchanges in the same period. This movement to cold wallets suggests that investors have limited intent to sell in the short term.
Furthermore, Martinez highlights the positive shift in the MVRV ratio, indicating that Ethereum is still at a “discounted” level relative to historical averages. This metric helps predict potential price ceilings by measuring investors’ profitability. Historically, when the ratio rose above zero, the probability of a strong rally increased. Martinez noted, “Market sentiment remains cautious, but the numbers support our target.”
Critical Technical Levels and the Anticipated Breakout for Ethereum
On the technical front, attention is focused on the $2,200 support. As long as the price holds here, a stepwise move to $3,000 and then $4,000 remains viable. Analyst Ted Pillows observed that ETH is nearing the upper line of a large-scale triangle formation, continuing since late 2020. Breaking to a new peak could simultaneously remove both psychological and technical barriers, potentially triggering a domino effect of purchasing.
Recently, ETH surged from $1,400 to over $2,600, demonstrating persistent investor appetite. However, the $4,000 level remains a crucial barrier that has resisted numerous attempts throughout the year. The convergence of the upper formation band with this resistance makes volume increase at the breakout moment critical. If sufficient buying volume occurs, Ethereum could reach new market value and price records.
