Ethereum's price has risen above $4,000, marking a 25% gain over the past month. However, the current MVRV ratio of -1.35% suggests short-term holders face unrealized losses, indicating potential further downside before recovery. Historically, Ethereum tends to rebound when the MVRV hits -4% or lower.
Whales are increasingly accumulating ETH, with addresses holding at least 1,000 ETH steadily rising throughout December, suggesting growing confidence among large investors. This trend is often seen as a bullish signal, hinting at a possible positive price movement in the near term.
Ethereum's price faces resistance at $3,987 and support at $3,763. If the resistance is broken, the price could climb to $4,100, with potential targets of $4,800 or $4,900 if buyers regain control. However, converging EMA lines signal possible trend weakness.
Combined with the MVRV ratio indicating potential corrections, Ethereum could face downside pressure. If the short-term EMA line crosses below the long-term EMA, this bearish signal could push the price to test $3,500 support, and failure could lead to a decline to $3,256.
