Since April, Ethereum has grown over 240% and reached a new all-time high. On-chain metrics now suggest that the market has entered the so-called “zone of belief,” which has historically preceded significant price movements.
On-chain data points to a bullish trend and room for growth
The long-term LTH NUPL (Long-Term Holder Net Unrealized Profit/Loss) indicator has moved into the green zone of belief, which analysts say confirms the continuing bullish trend. According to Gert van Lagen, this also means that the market is not yet in a phase of euphoria, which is usually a sign of the end of the cycle. The analyst therefore does not completely rule out the possibility of growth to levels of $10,000 or $20,000.
The MVRV (Market Value to Realized Value) indicator, which is currently around 2.08, also supports optimism. This is significantly less than in previous cycles, when the MVRV reached 3.8 in 2021 or even 6.5 in 2017. The current level thus indicates that Ethereum is still relatively undervalued and the market has plenty of room for further growth. For investors, this is an important signal that the current price is still below the historical overvaluation threshold, creating potential for further capital appreciation in the coming months.
Technical and fundamental factors support growth
Technical analysis confirms strong bullish momentum. Analyst Jelle points out that Ethereum has broken through all major resistance levels and trading volumes in the growth phase are reaching massive levels. The combination of technical structure and a position just below the new ATH creates conditions for further price movement upwards.
In addition to technical and on-chain signals, fundamentals also support growth. The market is anticipating a possible reduction in interest rates, interest in spot ETH ETFs is growing, and major companies continue to accumulate ETH. Barring any adverse interventions by the Fed or geopolitical shocks, Ethereum is well on its way to further price highs.
