Ethereum Price Prediction: Golden Opportunity for Late Bulls as ETH Set Eyes on $2.8K

Ethereum (ETH) has booked a 10% gain in the past 7 days, making it the best-performing cryptocurrency in the top 5 as all signs point to the beginning of a relief rally.

Trading volumes have subsided in the past 24 hours, dropping by 38% to $21 billion. This figure accounts for 8% of the token’s circulating market cap, down from the 11% we saw earlier this week.

Exchange-traded funds (ETFs) linked to the top altcoin have been attracting positive net inflows for 6 consecutive days. In total, they have received $386 million during this period.

Meanwhile, on-chain data from Santiment shows that a key metric called MVRV, which is the ratio between the market value and realized value of ETH tokens, has improved significantly as well.

MVRV Signals That a Local Bottom is In for Ethereum

We have been tracking this metric as a rising MVRV tends to be an early indication of increased buying pressure during bearish cycles. This means ongoing accumulation at floor prices for crypto assets.

The definite “buy” signal comes when the ratio turns positive. We are still far from that, but we just saw an increase from -42% on February 4 to 26% at the time of writing.

Paired with a significant improvement in market sentiment, as signaled by the Fear and Greed Index, we have enough evidence to say that we have hit a local bottom for ETH at around $1,800.

Ethereum Could Rise to $2,800 After Retesting This Key Level

The daily chart shows that ETH broke out of its consolidation pattern after it climbed above the $2,150 level.

In our previous Ethereum price prediction, we identified a trading opportunity following this breakout that offers a 4.5x risk-reward ratio.

The entry for this long position was a retest of the $2,150 from above, which is what could happen over the next couple of days. Late bulls could take advantage of this dip to enter the rally with an optimal risk-reward setup.

The Relative Strength Index (RSI) crossed above 60 in this higher time frame recently, indicating that bullish momentum is accelerating. This is also an early buy signal that anticipates a move to higher ground for ETH.

The $2,800 seems like a plausible target for ETH in the next 15 to 30 days as long as positive momentum continues. We have seen a spike in short liquidations recently that confirms the potential for a short squeeze.

Retest of $2,150 Level Creates Attractive Entry for an ETH Long

Heading to the 4-hour chart, we are still operating under a buy signal that popped up on Sunday. These signals are “decisional” candles that indicate increased institutional and whale participation in price moves.

Since the signal was spotted after a key level breakout ($2,150), we believe that this is not a true trend reversal and not a “fakeout”.

Hence, we still see the former $2,150 area as the ideal entry for a long position and see this recent drop as a normal pullback after the 4-hour RSI hit overbought levels. This trade offers a 4.5x risk-reward ratio if the stop price is set at $2,000.