On December 16, Ethereum surged past the $4,000 mark once more, raising speculation among analysts about a potentially sustained bull market. This optimism is based on the notion that Ethereum might follow Bitcoin's trajectory, which recently achieved another record high.
Historical Data and Long-Term Holders' Sentiment
Ethereum's rise to $4,000 has reignited optimism among long-term holders (LTH), according to Glassnode. Analysis by BeInCrypto indicated that the shift from hope to optimism signals the end of a bearish era, with the belief phase indicating an early bull market.
MVRV Analysis and Current ETH Position
The Market Value to Realized Value (MVRV) ratio is used to assess the market profitability of a cryptocurrency. Santiment reports that Ethereum's 30-day MVRV ratio is at 8.73%, lower than March's 22.61%, suggesting that the asset remains undervalued with potential for further appreciation.
Technical Analysis and Key Support and Resistance Levels
Ethereum shows strong support at the $3,075 level on its daily chart, forming the foundation for its recent ascent. Breaking past the $4,003 resistance underscores the ongoing bullish momentum. The Bull Bear Power (BBP) indicator remains positive, confirming the prevailing uptrend.
Ethereum continues to show potential for further growth with positive investor sentiment and strong support at the $3,075 level. With ongoing technical and fundamental observations, it is suggested that if the current trend persists, Ethereum could reach $4,400 in the near future.
