Ethereum is finally seeing a notable rebound in its price as the second-largest cryptocurrency by market capitalization, which continues to break through significant resistance levels.

Following its upward trajectory, seeing a nearly 10% increase in the past week, discussions about Ethereum potentially reaching a new all-time high by the year’s end have gained momentum.

Notably, aligning with the ongoing ETH rally is renewed interest in Ethereum futures, with market metrics pointing to a bullish sentiment among traders.

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More Room For Growth?

A CryptoQuant analyst known as ShayanBTC recently shared insights into the ongoing rally in Ethereum, emphasizing the role of funding rates—a crucial metric in futures trading. Funding rates reflect the sentiment of traders and indicate whether the market is predominantly bullish or bearish.

According to Shayan, Ethereum’s funding rates have seen a noticeable uptick in recent weeks, suggesting that demand for long positions is growing.

Despite this bullish sentiment, the analyst mentioned that funding rates remain below the peak of Ethereum’s previous all-time high of $4,900, signaling that “it has not yet entered an overheated state.”

Meanwhile, while indicative of bullish sentiment, funding rates also act as a warning sign for potential market corrections. Historically, sharp increases in funding rates have been followed by sudden market corrections or liquidation cascades.

However, Shayan notes that Ethereum’s current funding rates are still manageable, implying that the market has more room to grow before such risks become critical.

Ethereum Market Performance And Outlook

Ethereum is currently experiencing an upward trajectory, posting notable double-digit gains of roughly 15.6% over the past two weeks. This bullish performance has propelled ETH to break through the critical $3,500 resistance level, setting its sights on the next major resistance at the $4,000 mark.

Currently, Ethereum is trading at $3,563, reflecting a 1.3% increase in the last 24 hours. However, this price represents a slight pullback from its 24-hour high of $3,682 recorded earlier today.

Additionally, Ethereum’s current price is just 26.78% below its all-time high of $4,878, highlighting its gradual recovery within the market.

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Regardless of the bullish sentiment, Coinglass data shows that in the past 24 hours alone, 98,389 traders have been liquidated, with the total liquidations coming in at $278.03 million.

Out of this total amount of liquidations, Ethereum accounts for roughly $63.33 million, with $40 million of this liquidation coming from short positions and $23.3 million from long positions.

Amid the current price performance from Ethereum, the renowned crypto analyst known as Ali on X has reiterated his target for ETH. Ali said the mid-term target remains $6,000 and long-term target $10,000.

Our mid-term target for #Ethereum $ETH remains $6,000… Long-term target: $10,000! https://t.co/X4lodGGIVY pic.twitter.com/siQsJzelzE

— Ali (@ali_charts) November 27, 2024

Featured image created with DALL-E, Chart from TradingView

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