As the U.S. Securities and Exchange Commission (SEC) nears a decision on approving at least one spot Bitcoin ETF, Bitcoin’s price has surged over 7%, crossing the $45,000 mark. Concurrently, Ethereum (ETH), the leading altcoin, has also seen a price increase of 5%, approaching $2,400. In-chain data currently indicates a strong rally signal for ETH.
Crypto analyst Ali Martinez has highlighted a bullish outlook for Ethereum, suggesting that there are no significant supply barriers to prevent potential rises to $2,700 or higher. Martinez’s analysis also points to the $2,000 level as a strong demand wall, acting as a crucial support in case of price corrections, aligning with current market dynamics that reflect optimism for Ethereum’s short-term price trajectory.
According to Martinez, Ethereum’s Market Value to Realized Value (MVRV) Price Bands indicate significant price targets for the altcoin king. The next important price objectives for ETH, based on this data, are $3,830 and $5,100. This analysis offers valuable guidance for investors and market participants on potential future price movements in the Ethereum market.
Another positive indicator for Ethereum is the sharp decline in ETH supply on cryptocurrency exchanges. Data from the on-chain data platform Santiment shows that the supply of ETH on exchanges has fallen to the lowest level since its inception, representing just 8.04% of the total ETH supply.
The decrease in ETH supply on exchanges is typically a bullish signal, suggesting a reduction in selling pressure. This is particularly significant for an altcoin like ETH, where exchange supply plays a crucial role in influencing market prices. The current low levels of ETH on exchanges could indicate a strong upward momentum for its market price.