Ethereum Eyes Key Support At $2,350 — Price Surge To Follow?

Ethereum (ETH) experienced a rather adventurous trading week marked by significant price gains but even stronger losses. Notably, prominent market analyst Ali Martinez has highlighted a critical market condition that could result in a market surge.

Being the second largest cryptocurrency in the market, Ethereum’s price action remains important to traders, especially with the current doubts over an altseason.  In an X post on March 7, Ali Martinez shared an insightful analysis of the ETH market based on the MVRV extreme deviation pricing bands drawn by analytics firm Glassnode. Generally, the Market Value to Realized Value (MVRV) metric is used to determine whether an asset is overvalued or undervalued. Meanwhile, the MVRV pricing bands offer insights into an asset’s valuation relative to historical price trends. These bands identify overbought or oversold conditions with deviation levels acting as critical resistance and support zones.

According to Glassnode data shared by Martinez, the MVRV pricing bands suggest that Ethereum’s immediate challenge in any uptrend lies at the -0.5σ pricing band around $2,350. If ETH bulls can produce enough demand to reclaim this support level, it may propel further price gains according to patterns from previous market cycles.

Martinez states that the initial possible price target for such a rally is the mean pricing band around $3,528 representing a potential 51.95% gain from ETH’s present market price. With a formidable bullish momentum, a further price gain is also possible with a potential target at  the+1.0σ  pricing band around $4,164.

However, a failure to reclaim the support level at $2,350 could push ETH to a deeper correction than present. In such a scenario, Glassnode’s data reveals ETH could crash to around the -1.0σ pricing band at $1,444.

At press time, Ethereum trades at $2,134 reflecting a 1.89% decline in the last 24 hours. Furthermore, weekly losses stand at 4.77% contributing to a total decline of 23.58% in the past 30 days suggesting a dominant bearish sentiment among ETH traders.

However, amid this price fall, Ethereum whales are showing much optimism with a strong accumulation behavior. According to more data shared by Martinez, these whales recently acquired 1.1 million ETH in 48 hours demonstrating their robust confidence in Ethereum’s potential for a future price appreciation. Meanwhile, 330,000 ETH have been moved off exchanges in another bullish move.

In other developments, other analysts continue to speculate on the potential of an altseason. Renowned crypto expert Michael Van De Poppe has backed altseason to happen nudging investors to increase their exposure to “blue-chip altcoins”. Meanwhile, former Binance CEO Changpeng Zhao has referred market enthusiasts to the CoinMarketCap altseason index which is currently at 14 highly in favour of Bitcoin dominance.