Ether (ETH), the native coin of the Ethereum blockchain, has been struggling to go past the strong $2,000 resistance level. However, according to crypto analyst Ali Martinez, the digital asset’s on-chain indicators suggest that it may have started its journey toward $3,000.
Ethereum forms MVRV momentum golden cross
In an X post published on Thursday, Martinez highlighted why he thinks ETH may be headed toward $3,000. He remarked that ETH turned bullish after breaking above its market value to realized value (MVRV) 0.8 pricing band at $1,800.
The MVRV realized value – also called the realized price – represents the average price at which all circulating coins last moved on-chain, making it a measure of the market’s aggregate cost basis.
When an asset’s price approaches or moves above its realized value, it shows strengthening market sentiment, and improving profitability for the average holder. Historically, this metric has marked periods of a shift in momentum.
Past data shows that whenever Ethereum has broken through the MVRV realized value, it has pulled toward its prevailing realized price. At the moment, ETH’s realized price hovers around $2,300.
In addition, ETH has formed an MVRV momentum golden cross. Previously, whenever ETH has formed this pattern, it was followed by rallies to the tune of 50 percent, 166 percent, 74 percent, and 113 percent.
To explain, the MVRV momentum golden cross occurs when the short-term MVRV trend crosses above the long-term MVRV trend, signaling that market momentum and holder profitability are improving.
Historically, this has appeared during the early stages of major uptrends. Although, it is not a guarantee that prices will continue rising. If the bullish momentum persists, $3,000 will be the price level to keep an eye on.
According to fresh on-chain data, $3,000 is a major resistance zone. Notably, more than 10 million ETH previously exchanged hands at this price level.
ETH suffering from weak demand
The second-largest cryptocurrency by market cap has been performing poorly against Bitcoin over the past few years. The declining supply is not having the kind of positive effect on Ethereum’s price as many had hoped for.
One of the reasons behind ETH’s weak showing is its tepid demand in the U.S. markets. On Wednesday, exchange data showed that Coinbase premium for ETH had entered negative territory, confirming the cryptocurrency’s cold appeal to retail investors.
