Ethereum (ETH) surged 5.21% on Wednesday, ending the four-day consolidation. As a result of this move, ETH has formed a key support level at $2,680 that could provide the last buying opportunity before a new ATH. Ethereum price analysis forecasts a bullish reversal that could set up a new all-time high of $5,200 next.
Realized Ethereum Price Bands Forecast Next ETH Target is $5,200
Based on CryptoQuant data, the realized Ethereum price bands showcase key support and resistance levels. The realized price metric tracks the price at which each ETH was last transacted. For ETH, the realized price hovers around $2,263, which was tagged on February 3 after a massive crypto market correction.
The upper realized price band is 2.3 standard deviations, and the lower is 0.5 standard deviations. The chart shows that most Ethereum cycle tops and bottoms have occurred close to the upper and lower realized price bands, respectively.
The upper realized Ethereum price band stands at $5,206, which is the next target for ETH bulls.
Considering the recent recovery and stabilization around $2,600 and Wednesday’s 5.21% rally, the momentum seems to be picking up, indicating that ETH is ready for a reversal.
Ethereum Price Analysis: Key Levels to Watch
Ethereum price prediction notes several key hurdles that investors need to watch. The next key but minor hurdles include the previous month and previous week VWAPs at $2,683 and $3,306, respectively.
If Ethereum manages to flip this key hurdle into a support level, it could lead to a retest of $4,000, the next critical psychological level, where investors can consider booking profits. With such a bullish Ethereum price forecast, investors can expect ETH to not only revisit ATH of $4,868 but also set up a new one at $5,200.
While realized price bands forecast the next ATH target and Ethereum price analysis backs up this claim, lets’s take a look at other on-chain metrics that support a reversal for ETH in the coming months.
ETH Network Growth in an Uptrend
Despite the recent market corrections, the 30-day averages of the Network Growth and Daily Active Addresses are on an uptrend. The Network Growth metric tracks the number of new addresses joining the Ethereum network, signaling capital inflow. The daily active address spike signals investors’ interest in ETH at the current levels. Both on-chain metrics are painting a bullish picture for Ethereum price reversal.
1-Year ETH Holders At Loss
The 365-day MVRV tracks the average profit/loss of investors who purchased ETH over a year ago. Currently, this indicator hovers around -14%, indicating the average loss of these holders. The last time the MVRV dropped into this level was in Q3, 2024, which sparked a bottom formation and restarted the uptrend that pushed the Ethereum price close to $4,000 in the next four months.
Whales Bought Ethereum (ETH) on Recent Dips
Tying the above three indicators together is the whale transaction count indicator. The chart below contains two metrics: one that tracks transfers worth $100K or more and the other for more than $1 million. A spike in ETH whale transaction count after a rally suggests profit-taking and could lead to top formation and correction. On the other hand, if the ETH price crashes and this indicator spikes, it denotes accumulation.
As seen below, the July 2024 spike in whale transfer marked a top formation, leading to a steep correction. On the other hand, the uptick in early August 2024 formed a bottom, sparking a minor bounce and eventually a rally toward $4,000.
The February 3 crash led to a spike in whale transfers worth more than $100K and $1M, signaling a massive accumulation spree. All these signs point to one thing – a renewed interest in Ethereum and a potential reversal that leads to a price rally to new highs.
To conclude, Ethereum price seems primed for a bullish reversal as indicated by the 365-day MVRV, growth in daily active addresses and network growth. The 5.2% gain on Wednesday is just the start of this uptrend, with a target of $5,200, as indicated by the realized price bands metric.
The post Can Ethereum Price Hit $5,200 Amid Network Acvitity Spike & Institutional Buying? appeared first on CoinGape.
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