A quant has explained how Ethereum is now in its secondary bull run phase according to the trend in this popular on-chain indicator.

Ethereum MVRV Ratio Is Forming A Pattern Similar To Past Two Cycles

In a CryptoQuant Quicktake post, an analyst talked about the latest trend in the Market Value to Realized Value (MVRV) Ratio for Ethereum. The “MVRV Ratio” is an on-chain metric that keeps track of the ratio between the asset’s market cap and its realized cap.

The realized cap here refers to a capitalization model that calculates ETH’s total value by assuming that the value of each token is equal to the price at which it was last transacted on the network.

In effect, the model is a measure of the sum of cost basis of all tokens in circulation or more simply, a measure of the amount of capital that the investors have put into the asset. As such, the MVRV Ratio indicator compares the market cap, which is just the total value that the holders are carrying in the present, against this initial investment.

When the value of the metric is greater than 1, it means the market cap outsizes the realized cap. Such a trend implies the investors as a whole are in a state of net profit. On the other hand, it being under the threshold suggests the dominance of loss in the market.

Now, here is the chart shared by the analyst that shows how the value of the Ethereum MVRV Ratio has changed over the last few years:

The value of the metric appears to have sharply been moving up in recent days | Source: CryptoQuant

As is visible in the above graph, the Ethereum MVRV Ratio shot up to a relatively high level during the first quarter of the year as the price rally took place. In the bearish consolidation that followed the run, though, the indicator cooled back down, returning to the neutral 1 level.

With the latest surge in the cryptocurrency, the MVRV Ratio has again witnessed a reversal to the upside. Interestingly, something like this was also observed during the last two bull markets, as the quant has marked in the chart.

It would appear that both of these runs involved two phases where the Ethereum MVRV Ratio rose to extreme levels, with a cooldown happening in between the two.

If the current cycle is going to show something similar, then the rally earlier in the year could have been the first of the phases, with the most recent rally potentially taking the role of the second one.

In both of the previous two cycles, the secondary bull run took the price to notably higher levels than the first one, so Ethereum might soon surpass the high from earlier in the year. This would only be, of course, if this pattern is going to hold for the current cycle.

ETH price

At the time of writing, Ethereum is trading at around $3,600, up almost 8% over the past week.

Looks like the price of the coin has been on the rise recently | Source: ETHUSDT on TradingView

Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

While Bitcoin (BTC) has reached new all-time highs this month, the Ethereum price has failed to experience a significant rally, befitting its position as the second-largest cryptocurrency by market capitalization. However, a crypto analyst suggests that this bearish price action could soon end, as Ethereum (ETH) appears to be repeating its breakout pattern from the 2017 to 2018 cycle. Based on this analysis, the ETH price could be on track to hit a remarkable new price target above $20,000. 

Ethereum Price Eyes New Target Above $20,000

Mr Tycoon, a TradingView analyst, has shared his intense bullish outlook for the Ethereum price, suggesting that the number one altcoin in the crypto market could surge as high as $23,000 this cycle. The analyst shared his optimism about Ethereum’s recent price action, emphatically declaring that the altcoin is about to “send higher soon.”

Ethereum last experienced a record-breaking price surge during the 2021 bull market, when it achieved an ATH above $4,800. The TradingView analyst has revealed that Ethereum’s fractal in the previous bull cycle versus this current cycle follows a similar pattern, indicating an imminent rally. 

Mr. Tycoon presented a detailed chart comparing Ethereum’s price movements in the 2017-2021 and 2021-2025 cycles. In the earlier four-year cycle, Ethereum hit a macro bottom in 2019, experiencing price fluctuations before recording a significant rally after Bitcoin broke an all-time high in 2021.

A similar price action is also seen in this current four-year cycle, where Ethereum hit its macro bottom in 2022 and then declined significantly. Based on the analyst’s chart, Bitcoin reached an ATH in 2024, just like it did in the 2021 bull cycle.  

The TradingView analyst noted that historically, Ethereum starts pumping after Bitcoin enters a price discovery. This implies that Bitcoin typically leads the market cycles, and once it finds a new ATH, ETH tends to follow, experiencing a notable rally. 

With this in mind, Mr. Tycoon predicts a significant price increase for Ethereum, suggesting that it could surge past previous all-time highs and rise above $23,000. This impressive price rally would represent a 557% increase from the current market value of ETH. 

Analyst Reveals Best Time To Buy ETH 

While Ethereum is trading at $3,586 as of writing, a crypto analyst identified as ‘Crypto Ash’ has projected that a rally to $10,000 or $15,000 is highly probable for the top altcoin this bull cycle. 

The analyst revealed that the best time to start accumulating Ethereum was in December 2024, which represents a prime entry point for investors. His analysis indicates that, historically, Ethereum has experienced significant price growth from January to April after each Bitcoin halving year. This suggests that investors who begin purchasing ETH tokens as early as December may be well-positioned for gains if the ETH price rallies in Q1 2025. 

Featured image created with Dall.E, chart from Tradingview.com

Ethereum has been making waves in the crypto market, reaching its highest levels since June after hitting a local high of $3,688 just hours ago. This impressive price action has sparked excitement among investors and analysts, with many anticipating further surges in the coming hours.

Ethereum is now eyeing a breakout above its yearly highs, which could set the stage for an even more aggressive rally.

Related Reading

Crypto analyst Carl Runefelt shared a technical analysis on X, highlighting the significance of Ethereum’s current resistance. According to Runefelt, ETH is at a critical juncture, facing a major resistance level that could determine its next move. Should Ethereum break above this barrier, it might quickly pump to $3,900, solidifying its bullish momentum.

As the broader market sentiment remains strong, Ethereum’s price action remains unpredictable, especially as it leads altcoins in this upward trend. Investors are now eager to see whether ETH can maintain its upward trajectory and establish new milestones in the days ahead. 

Ethereum Reaching New Highs

Ethereum is making headlines as it reaches new highs, riding the wave of bullish momentum while Bitcoin consolidates below the $100,000 mark. This rally has positioned Ethereum as a key driver in the altcoin market, which continues to post massive gains and attract investor attention.

With the broader market sentiment improving, Ethereum’s performance is becoming a focal point for traders and analysts alike.

Related Reading

Crypto analyst Carl Runefelt recently shared a technical analysis on X, emphasizing Ethereum’s critical resistance level. According to Runefelt, Ethereum is currently at a make-or-break point. A successful breakout above this resistance could trigger a sharp rally, potentially sending ETH to $3,900. If this level is surpassed, Ethereum would likely target yearly highs above $4,000, solidifying its position as a leader in the ongoing market surge.

The coming days will be crucial for Ethereum as traders closely watch its ability to maintain upward momentum and overcome these key price levels. With the altcoin market gaining strength and optimism growing, Ethereum’s next move could set the tone for the broader crypto landscape. Whether it achieves a breakout or consolidates further, the attention on Ethereum highlights its role in shaping this bullish market cycle.

ETH Price At A Turning Point

Ethereum is currently trading at $3,600, a crucial level that will define its next price direction. As the market watches closely, Ethereum’s ability to hold above this price will determine whether it can continue its bullish momentum or face a pullback.

If ETH maintains strength above $3,600, it is likely to surge further, targeting the next significant milestone: yearly highs at $4,080. A breakout above this level would not only reaffirm the bullish trend but also position Ethereum for a potential continuation toward even higher levels.

However, Ethereum could face a short-term correction if it fails to hold above $3,600. The first major demand zone lies at $3,400, which would act as a critical support level. A failure to sustain even this level could lead to further declines, with the next potential support zones forming at lower price ranges.

Related Reading

Market sentiment remains cautiously optimistic, with many analysts highlighting the importance of Ethereum’s current price action. The coming days will be pivotal as investors and traders look for signs of strength or weakness at this critical juncture. Whether Ethereum consolidates further or surges toward new highs, its performance will likely have a significant impact on the broader altcoin market.

Featured image from Dall-E, chart from TradingView