According to CryptoPotato, Ethereum's price recently exceeded $3,000, and analysts are predicting further significant increases. The declining Market Value to Realized Value (MVRV) ratio, negative exchange netflow, and the potential approval of a spot Ethereum ETF in the US could drive Ethereum's value higher.
The cryptocurrency market has seen a significant uptrend in recent days, with many digital assets reaching multi-week highs. Ethereum (ETH), although not experiencing such a substantial increase, is also among the notable gainers. Its price surpassed the $3,000 mark, representing a 4% increase on a daily scale. Many analysts believe this could be the beginning of a bull run that may occur in the near future.
Michael van de Poppe, a cryptocurrency analyst, recently claimed that Ethereum is on its way to reaching a higher timeframe support level. Another analyst, CryptoYoddha, was even more bullish, predicting a price explosion towards the $10,000 milestone by the end of the year. World of Charts also suggested that Ethereum has started breaking the 'falling wedge consolidation' on a 12-hour timeframe, forecasting a continuation towards $4,500 in the coming weeks.
One factor indicating that Ethereum's value could be on the verge of a rally is the MVRV. This ratio helps to identify if the asset is overvalued or undervalued. A high ratio suggests a market top, while a low one may indicate a good buying opportunity. The MVRV has been on a significant decline since mid-March. Another factor is Ethereum's exchange netflow, which has been predominantly negative in the past month. This shift from centralized platforms towards self-custody methods is considered bullish as it reduces the immediate selling pressure.
Lastly, Ethereum's price may increase if a spot Ethereum ETF is approved in the United States. However, such approval could also lead to a 'sell-the-news' event, similar to what was observed after the Bitcoin ETF approvals in January.