Ethereum at $4K: A New Beginning or the Peak of the Bull Cycle?

in LeoFinance5 days ago

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The $4,000 level has historically been a critical price point for Ethereum, but this time there’s more optimism that the bullish rally could continue.

Ethereum back above $4,000
In recent hours, Ethereum (ETH) has surged back above $4,000. This price has always represented a key threshold for the asset, beyond which—after reaching all-time highs (ATHs)—sharp corrections have typically followed.

This time, however, several indicators suggest there could be room for another breakout, allowing ETH to surpass those historical resistances that have prevented it from achieving new ATHs for years.

The first factor in favor of the second-largest cryptocurrency by market capitalization is the number of long-term holders (LTH) and their behavior at this price. As shown by Glassnode, the metric Unrealized Profit/Loss (LTH-NUPL) indicates that sentiment around ETH remains quite optimistic.

ETH’s Next Challenges
Analyzing this data, several analysts believe we are still in the "conviction" phase, not yet in "euphoria" (a phase historically associated with the most significant gains). For this reason, ETH’s outlook remains strong even beyond $4K.

Another interesting metric is the "Market Value to Realized Value" (MVRV), which assesses market profitability by determining whether the asset may be overvalued or undervalued. According to Santiment, Ethereum’s 30-day MVRV ratio is currently 8.73%, lower than the 22.61% recorded in March—the last time ETH reached $4K.

This further reinforces the idea that ETH could reach new highs in the coming weeks and months. If the trend holds, the most optimistic traders are looking at $4,400 as the most likely short-term target. On the downside, the first support level is around $3,500.

By Gue22 🌐🚀 What are your thoughts on this?