Ethereum price has struggled to maintain its upside momentum as MVRV on-chain metric data shows the chances of a 40% crash ahead if history repeats. As ETH struggles under $3,200, the overall market sentiment is turning bearish towards the largest altcoin, but hopes of a rally to $10K are still high. Furthermore, as Fed Chair Jerome Powell keeps interest rates unchanged, altcoins might have a tough time amid ongoing quantitative tightening.
Ethereum Price Can See 40% Drop, Predicts Popular Analyst
Prominent crypto analyst Ali Martinez has highlighted a critical trend in Ethereum’s (ETH) market performance. According to Martinez, Ethereum’s Market Value to Realized Value (MVRV) ratio has once again fallen below the 160-day moving average. During a similar situation in June last year, the Ethereum price saw a 40% drop plunging all the way from $3,500 to $2,100 after it dropped below 160-MA.
Source: Ali Martinez
Martinez further identified a critical support zone for Ethereum between $2,230 and $2,610. This area represents a substantial accumulation region, with 11.99 million wallets holding a combined total of 62.27 million ETH. As ETH tests these support levels, market participants are closely watching for potential Ethereum price movements.
Source: Ali Martinez
Growing ETH Supply Could Suppress Price
Back in July last year, crypto analyst Benjamin Cowen warned about Ethereum’s (ETH) growing supply. This indicates the Merge for deflationary ETH has failed. According to Cowen, there has been an increase in supply by approximately 60,000 ETH per month. Growing supply has been a major cause of concern and can affect ETH price recovery. Reiterating his stand, the analyst further noted:
“Ethereum supply is <11,000 away from the pre-merge supply, just as monetary policy is starting to change (Bank of Canada just announced they are ending QT)”.
Source: Benjamin Cowen
Ethereum Price Rally to $10K A Distant Dream?
Over the past few months, crypto market analysts have been bullish for Ethereum to hit five figures and rally further. As long as the ETH price remains above $3,000 levels, the market can hope for the upside. However, its first immediate resistance would be at $4,000, where the Ethereum price faced multiple rejections in the past. Analyst Ted Pillows noted:
“Ethereum is forming higher lows on the longer timeframe. $4K remains the most crucial level, and the reclaim of that will send $ETH to new ATH. Once that happens, I’m expecting Ethereum to hit $9K-$10K within 3-4 months. Trump will buy more and more.”
Source: Ted Pillows
While staying bullish on Ethereum the analyst further noted: “You thought Trump was buying $200,000,000+ worth of Ethereum to enter a depressing bear market? Everyone was bearish on the FOMC meeting. Look at the markets right now—bullish on Ethereum”.
Source: Matrixport
As of press time, the ETH price is trading 2% up at $3,186 with daily trading volumes surging by 22% to $24.17 billion. Amid Ethereum’s underperformance, crypto market analysts believe that XRP can flip Ethereum moving ahead.
The post Will Ethereum Price Crash 40% As MVRV Ratio Drops Below Key Level? appeared first on CoinGape.
