Ethereum News Today: Ether Enters "Belief Zone" — Could $20K Be Next?

Ether's price has drawn significant attention as it trades in a tug-of-war range near $4,500, with technical indicators and on-chain metrics suggesting a mix of bullish and bearish pressures. The cryptocurrency, which reached a record high above $5,000 in late July, has since faced consolidation, raising questions about whether the rally is sustainable or nearing a correction. On-chain analytics highlight growing investor optimism, particularly among long-term holders, whose net unrealized profit/loss (NUPL) indicator has entered what is known as the “belief” phase—a stage historically associated with prolonged bullish trends.

According to on-chain data, the long-term holder NUPL for Ether is in the “belief-denial” (green) zone, a sign that the market is not yet in a euphoric phase typically seen at cycle peaks [1]. Analyst Gert van Lagen observed this shift, noting that Ether has historically seen significant price rallies following similar market conditions. This suggests that while the market is still in a growth phase, there is potential for further gains, with price targets as high as $10,000 or even $20,000 not ruled out by some experts [1].

The market value to realized value (MVRV) ratio for Ethereum currently stands at 2.08, significantly lower than the 3.8 seen in 2021 and 6.49 in 2017 [1]. This suggests the market is still relatively undervalued, with unrealized profits at more moderate levels compared to prior bull cycles. The MVRV extreme deviation pricing bands also indicate that Ether could rise further before reaching the upper bound of $5,500, which is associated with extreme unrealized gains [1].

From a technical perspective, Ether’s price has confirmed a bullish megaphone pattern on the weekly chart, which has been forming since December 2023 [1]. Analyst Jelle noted this pattern has a target of $10,000, and Ether has already overcome key resistance levels. A breakout above a rounded bottom pattern on the daily chart further supports this view, with a technical target of $12,130—nearly a 161% increase from current levels [1].

Institutional adoption and macroeconomic factors are also playing a role in Ether’s rise. The passage of the GENIUS Act in the U.S. has bolstered Ethereum’s position as a key infrastructure for stablecoin transactions [2]. Additionally, several publicly traded companies have begun aggressively accumulating Ether, following a trend set by companies like MicroStrategy. These moves, combined with increasing demand for Ethereum spot ETFs, have contributed to a surge in investor confidence and capital inflows [2].

Ethereum’s unique economic model, with a typically neutral or negative net issuance of new coins, has also helped constrain supply while demand continues to rise [2]. This, combined with Ethereum’s role in programmable finance through smart contracts, sets it apart from Bitcoin, which is viewed more as digital gold [2]. Experts like James Butterfill of CoinShares suggest that Ethereum’s value proposition is just beginning to be fully understood by major investors, leaving room for further appreciation [2].

Ether’s ability to break through previous all-time highs and maintain momentum amid mixed technical signals indicates a market in transition. While the current consolidation near $4,500 introduces uncertainty, the broader on-chain and macroeconomic factors point to a favorable environment for continued upside, though caution is warranted as market dynamics evolve.

Source:

[1] Ether Price Enters 'Belief Zone' Following $5K All-Time Highs (https://cointelegraph.com/news/20k-eth-price-in-play-ethereum-belief-zone)

[2] Ether, Ethereum's coin, breaks 2021 all-time high (https://www.axios.com/2025/08/24/ether-all-time-high)