Ether Square faces challenges

Over the years, apart from BTC ($BTC), the most eye-catching currency in the overall cryptocurrency market is Ethereum ($ETH), commonly known as '二哥'. However, looking at the recent market performance, Ethereum seems to fall short of investors' expectations - while other cryptocurrencies are rising, Ethereum's price is struggling to break through, and there is no obvious rise trend.

While Bitcoin ($BTC) broke new highs again last night, Ethereum's price has struggled to break through $4,000, and even experienced a temporary setback, highlighting Ethereum's weakness.

However, renowned analyst ALI Martinez pointed out in his research that as several key indicators gradually form, Ethereum may be on the eve of a significant Rebound, and may even challenge the psychological barrier of $10,000?

MVRV momentum and price breakthrough

The so-called MVRV (Market Value to Realized Value ratio) is an important indicator for measuring whether an asset is "overvalued or undervalued".

According to Ali Martinez's observation, the MVRV momentum of Ethereum is now approaching the critical value. From historical trends, when MVRV surpasses the 180-day moving average line, it often accompanies a rapid rise in price.

Image source: X Ali Martinez's price analysis chart

He pointed out that the MVRV crossover point that has appeared in previous Ether bull markets has not yet appeared, and this latency may actually be a positive signal, indicating that momentum is still continuing to accumulate, with the potential to erupt in the coming weeks or even months.

Whale activity and institutional investment

In addition to technical indicators, on-chain data also provides clearer market sentiment. In the past two weeks, EthereumWhale (Large Investors holding a large amount of $ETH) has purchased over 430,000 Ethereum, with a total value of over $1.4 billion. This large-scale increase in holdings usually occurs during periods of relatively low prices, but investors have a positive long-term outlook for value appreciation.

In addition, institutional investors' interest in Ethereum has also increased significantly. The Ethereum spot ETF has turned to net inflows, purchasing over $147 million worth of ETH in just two weeks, reflecting the market's continued confidence in Ethereum.

Image source: X Ali Martinez's price analysis chart

The firm support of the key pivot point

From the Technical Analysis perspective, Ali Martinez believes that the price trend of Ether is currently forming a 'rise parallel channel'. As long as the key support levels of $3,000 and $2,400 are held, there is a possibility of testing the key levels of $4,000 and $6,000 in the future.

Image source: X Ali Martinez's price analysis chart

From a broader market perspective, Ali Martinez emphasizes that in this cycle, the price trend of Ethereum almost overlaps with the S&P 500 index. If this correlation continues, then when the S&P 500 index breaks through the upside, Ethereum is also likely to follow suit and challenge the high point of $10,000.

Finally, Ali Martinez also mentioned that in the past Bull Market, there will always be a stage where Ethereum outperforms BTC. For Ethereum investors, the current market is both a challenge and an opportunity.

With the approaching breakthrough of MVRV momentum, the continuous inflow of Whale and institutional funds, as well as the overall market's optimism, Ethereum seems to be brewing a rebound. However, investors need to do Risk Management and pay attention to the pullback pressure that may be brought by the fall below the support level.

[Disclaimer] The market is risky, and investment should be cautious. Analyst views are for reference only. Users should refer to more diverse indicators to determine whether to invest and consider whether any opinions, views, or conclusions in this article are in line with their specific circumstances. Investment based on this is at your own risk.

'Ethereum to surpass BTC? Analyst reveals '3 key points': hitting $10,000 is only a matter of time.' This article was first published in 'encryption city'.