Ethereum News Today: Ethereum's Price Dilemma: Belief or Correction Before $10K Breakout

Ethereum (ETH) has retreated from recent record highs following a sharp rally, prompting analysts to assess key levels of support and potential price targets. After reaching an all-time high of $4,958 on August 24, ETH has since corrected to around $4,600, triggering a mix of bearish and bullish sentiment across the market. Technical and onchain data suggest that the price remains in a consolidation phase, with significant support levels identified at $4,200 and $4,070. A break below these thresholds could extend the correction further toward the $3,660–$3,900 zone, a potential accumulation range if bearish momentum persists [2].

On the long-term onchain metrics, Ethereum is showing signs of investor belief rather than euphoria. The long-term holder (LTH) net unrealized profit/loss (NUPL) indicator has entered a “belief” zone, a historical precursor to major price rallies according to analyst Gert van Lagen. This phase is typically followed by a transition to euphoria, which has historically been associated with significant price surges. Currently, the ETH price still has room to climb, with van Lagen suggesting that $10,000 and even $20,000 price targets are not out of the question [1].

Further validation of a bullish outlook comes from the market value to realized value (MVRV) ratio, which stands at 2.08. This level is significantly lower than historical peaks of 3.8 in 2021 and 6.49 in 2017, indicating that Ethereum remains undervalued relative to the unrealized gains held by investors. The MVRV extreme deviation pricing bands also suggest there is room for ETH to rise before reaching the uppermost unrealized profit threshold at $5,500 [1].

From a technical perspective, Ether’s price action has confirmed a bullish megaphone pattern on the weekly chart since December 2023. Crypto analyst Jelle noted that this pattern has a target of $10,000, and Ether has already broken through key resistance levels, suggesting strong upward momentum. Meanwhile, the price retested the neckline of a rounded bottom pattern at $4,100, confirming the breakout and setting a target of $12,130 [1]. Fellow analyst Mickybull Crypto added that the $7,000–$11,000 range represents a viable target for Ether in the near term, based on the current market cycle [1].

On the downside, Michael van de Poppe, another analyst, believes that Ethereum could correct to the $4,100–$4,200 range before resuming its upward trend. This area would represent an attractive accumulation point for investors, with potential for a new peak above $5,000. However, if the price drops further to $3,941, investors holding at $4,100 may face unrealized losses. Van de Poppe argues that such a correction would likely be temporary, with ETH unlikely to remain below $4,100 for an extended period [3].

The market remains highly liquidated and range-bound between $4,200 and $4,500, with key onchain liquidity zones acting as price attractors. The liquidation heatmap indicates dense clusters of both short and long positions at $4,500–$4,700 and $3,800–$3,900, respectively. These levels could dictate near-term price movements, with volatility likely to remain elevated until a clear breakout occurs [2].

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] ETH's Rally Hinges on These Crucial Support Levels (https://cryptopotato.com/eths-rally-hinges-on-these-crucial-support-levels-ethereum-price-analysis/)

[3] At what rate to buy ethereum after updating the maximum? (https://happycoin.club/en/po-kakomu-kursu-pokupat-efirium-posle-obnovleniya-maksimuma/)