Ethereum News Today: Ethereum Enters 'Belief Zone' as $10K Bull Case Gains Momentum

Ethereum's price has surged more than 240% since April, reaching an all-time high of over $5,000 as of Sunday. On-chain data suggests that the market is entering a “belief” phase, which historically precedes significant price rallies. According to Gert van Lagen, a prominent analyst on X, Ether’s long-term holder (LTH) net unrealized profit/loss (NUPL) indicator has moved into the “belief-denial” (green) zone. This phase typically reflects a growing investor optimism without the euphoria that often signals market peaks. The LTH NUPL metric evaluates the balance between unrealized profit and loss for holders of ETH for at least 155 days, offering insight into market sentiment.

Further supporting the bullish outlook is the market value to realized value (MVRV) ratio for Ethereum, which currently stands at 2.08. This is well below the peak readings of 3.8 in 2021 and 6.49 in 2017, indicating that the asset remains undervalued relative to its historical performance. Additionally, the MVRV extreme deviation pricing bands show that ETH has room to rise before reaching the uppermost band at $5,500, suggesting potential for continued appreciation without triggering extreme profit-taking behavior.

From a technical standpoint, Ether’s price has validated a bullish megaphone pattern on the weekly candle chart, which has been forming since December 2023. Analyst Jelle noted in an X post that the pattern has a target of $10,000, and ETH has already broken through key resistance levels. The price retested the neckline of a rounded bottom pattern at $4,100, confirming the breakout and setting a technical target of $12,130. This represents a potential rise of 161% from the current level. Fellow analyst Mickybull Crypto echoed the bullish sentiment, setting cycle targets for Ether at $7,000 to $11,000.

Analysts have also cited broader macroeconomic factors as potential catalysts for further price gains, including anticipated interest rate cuts and capital inflows from spot Ethereum ETFs. Additionally, demand from ETH treasury companies has remained robust, reinforcing the possibility of sustained upward momentum. However, van Lagen cautions that while the indicators suggest a strong foundation, the market still needs to climb further for the full potential of this cycle to materialize.

Despite the optimism, the cryptocurrency market remains volatile, and price predictions should not be treated as investment advice. As outlined in the analyzed material, investors are urged to conduct their own due diligence before making any trading or investment decisions. The data and patterns discussed here are based on current on-chain metrics and technical analysis.

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