In the cryptocurrency sector, Ethereum has always been in the shadow of Bitcoin. However, analysis indicates that the market value of Ethereum might be on the rise.
Crypto analyst Ali Martinez has predicted that Ethereum price might rise to $7,000 in the current bull market, which will attract more investors to the platform.
Analyzing the MVRV Pricing Band
According to Ali Martinez, the MVRV ratio is one of the best metrics for determining the direction of Ethereum price.
The MVRV ratio is a tool that measures whether an asset is overvalued or undervalued at a specific time. For Ethereum, the asset has always gone beyond the 3.2x MVRV during a bullish run.
For instance, in the years 2017 and 2021, Ethereum rose to levels above $1000 and nearly $4900 respectively.
Martinez indicated that Ethereum’s MVRV is set to surpass this level once again, and could even go as high as $7,000.
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More so, historical performance and statistical models provide the basis for Martinez’s argument.
As shown in the Glassnode charts, when Ethereum is trading above this particular MVRV ratio, it is accompanied by significant price rise.
Current data indicates that the MVRV band is in sync with another potential increase towards the $7k level. If this happens, it may replicate or even surpass previous market rallies.
Moreover, supporting the bullish sentiments, Ethereum open interests have shown a strong correlation with price trends, reaching peaks of nearly $30 billion alongside ETH price surge.
The chart highlights a significant rise in open interest during periods of bullish momentum, particularly from late September to November.
These spikes reflect growing trader participation and confidence in ETH price potential.
More so, sustained levels of open interest above $10 billion during consolidations indicate robust market support
Ethereum Price’s Market Context
Besides the technical aspects, the general trend of the market also has a huge influence on Ethereum price.
With the market slowly recovering, investor sentiment and whale activity will determine the rate of Ethereum price gains.
Martinez and other analysts have used such patterns time and again to explain probable future price trends in various cycles.
Fueling the bullish sentiment, DeFi Project, World Liberty Financial associated with US President Donald Trump has purchased 14,403 ETH worth $48 million.
This significant investment has already begun to generate returns as the ETH price increased by 3.5%, proving that the market has a high level of interest and investment in the constantly growing DeFi sector.
At press time, Ethereum price is trading at $3,296.67, marking a 3.59% increase over the last day.
The cryptocurrency experienced significant trading activity, with volumes spiking 88% to $65.84 billion.
After peaking near $3,450, Ethereum saw a sharp drop but stabilized around the current price levels.
Source: https://www.thecoinrepublic.com/2025/01/20/will-ethereum-price-rally-past-7000-experts-point-to-this-bullish-pattern/