Ethereum's Resurgence: Altseason Repeat in the Making

Ethereum's price movement has been hinting at a potential resurgence, reminiscent of the explosive gains witnessed during the 2021 altseason. Crucial short-term liquidity zones have emerged between $2,800 and $3,000, reflecting decreased selling pressure in the Futures market. According to COINOTAG, the MVRV ratio slightly above 1 further emphasizes the potential for appreciation, indicating an influx of permanent holders.

Ethereum shows signs of rallying back to significant price levels akin to the 2021 altseason, with liquidity zones suggesting strategic market support. Ethereum's current price dynamics reveal a remarkable potential for a rally comparable to the 2021 altseason. Following a notable decline from earlier peaks, the digital currency is now positioning itself around the $2,000 mark, a pivotal support level. Historical patterns suggest that if Ethereum can hold this ground, it may replicate the trajectory from late 2020 to early 2021, where it soared from approximately $500 to around $4,500.

The recent market behavior has shown that Ethereum is displaying resilience, particularly around its support level above $2,500. Currently, the price remains strategically poised for potential upswing. The buying momentum witnessed in late 2021, characterized by increased investor confidence, could echo today's situation if price action follows suit. An important detail to consider is Ethereum's realized price of $2,200, which is notably lower than its current market price of approximately $2,600. This discrepancy indicates a significant potential for price appreciation.

The increasing number of permanent holders—individuals who purchase ETH and choose not to sell—suggests an underlying confidence in Ethereum's long-term value. This surge mirrors trends seen previously with Bitcoin, indicating a shift towards a more stable ownership structure within the Ethereum ecosystem. With this uptick in permanent holders, selling pressure has notably diminished, signaling robust backing from investors despite price volatility. Furthermore, the MVRV ratio, being slightly above 1, further reinforces the notion that Ethereum is currently undervalued, hinting at a potential pricing correction upwards.

Current analysis of Ethereum's liquidity heatmap reveals critical support and resistance zones situated between $2,500 and $3,00