$ETH Resistance Zone Holds Key to Potential $5,000 Rally

Ethereum has staged an impressive 30% rally in recent weeks, pushing its price to over $2,500. Analyst Ali Martinez suggests that ETH could be on a path toward $5,000 if it clears a major resistance zone.

New data shared by Martinez shows growing buying pressure for Ethereum. The MVRV Ratio formed a golden cross above its 160-day moving average, and stronger whale accumulation has been observed. The number of addresses holding more than 10,000 ETH has increased by 1.74%, with 17 new whale addresses joining the network over the past week.

Additionally, the token supply is moving off exchanges, with over $440 million worth of ETH withdrawn in the past week. Martinez notes that this trend supports increasing buying pressure, but Ethereum still faces a major resistance zone between $2,722 and $2,970.

If Ethereum breaks through this zone, the next major MVRV Pricing Band is near $5,363, at the 2.4 level. However, a rejection could send the altcoin back toward the Realized Price near $2,235 before a potential move toward the 2.4 MVRV band.

The Long Investor notes that Ethereum has once again reached its 200-week moving average, which happens to be the 11th such instance over the past five years. Each time it has moved below the 200 WMA, it has later returned to the moving average.