- Ethereum’s MVRV Golden Cross has previously preceded strong rallies, renewing bullish sentiment among traders.
- Glassnode data suggests Ethereum’s recovery is gaining strength without showing signs of an overheated market.
- Growing Ethereum purchases by traders and institutions point to rising confidence in the token’s outlook.
Ethereum has flashed a historically bullish on-chain signal, according to crypto analyst Ali Charts, reviving expectations that the token could extend its recovery. In a post on X, Ali said Ethereum’s MVRV Golden Cross had been confirmed, noting that the previous four signals preceded gains of 50%, 166%, 74% and 113%.
The signal comes from Glassnode’s Market Value to Realized Value (MVRV) Ratio, an on-chain metric that compares Ethereum’s market price with the average price at which existing coins last changed hands. Traders use it to gauge whether the market is becoming overvalued or undervalued.
Source: X
According to historical data, similar recoveries have often appeared as market sentiment improved and have often coincided with stronger market performance.
MVRV Indicator Points to Improving Conditions
Glassnode’s latest data showed Ethereum’s MVRV Ratio holding near the neutral level of 1 while its 160-day moving average flattened after weeks of decline. The combination suggests investor sentiment has steadied without reaching the excessive optimism that has accompanied previous market peaks.
The data also showed Ethereum has yet to reach the deeply undervalued levels that have historically marked major market bottoms. During the 2024 and 2025 rallies, the MVRV Ratio climbed well above its long-term average as Ethereum advanced toward the $4,000 to $5,000 range. Those gains were later followed by corrections that reduced investor profits.
Analysts Increase Ethereum Exposure
Alongside the improving on-chain indicators, several well-known crypto traders have increased their exposure to Ethereum. Among them, Doctor Profit said Ethereum now makes up 60% of his combined Bitcoin and Ethereum portfolio, up from about 10% previously.
<embed>https://x.com/DrProfitCrypto/status/2081520587793485880 </embed>
The trader described the move as one of the biggest allocation decisions of his career, writing, “Either this will become one of the greatest allocation decisions of my career or one of the craziest.” He also shared a chart projecting Ethereum could climb to $4,000 by early 2027.
Institutions Continue Buying Ether
Market participants have also pointed to improving technical signals. Crypto trader Mercury said Ethereum remains just below a key breakout level near $1,950, adding that a move above that price could pave the way for gains toward $2,350 and potentially $2,800.
Institutional demand has also remained steady. BitMEX co-founder Arthur Hayes added 645 Ether, lifting his holdings to 3,915 ETH despite sitting on an unrealized loss of about $113,000.
<embed>https://x.com/lookonchain/status/2081213936402374803 </embed>
Bitmine also expanded its Ethereum treasury by purchasing another 9,946 ETH, bringing its total holdings to 5,787,414 ETH. Chairman Tom Lee said Ethereum’s recent outperformance against Bitcoin reflects improving momentum and identified $2,000 and $2,500 as the next key price levels to watch.
Related: Ethereum Price Prediction: Ethereum Targets $2,000 as Market Activity Rebounds
Related: 24 Hour Crypto Recap: Here’s What Happened in the Market
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