Ethereum Bulls Eye $5,000 Target as Altcoin Battles Resistance

Ethereum's recent price action has been impressive, with a 30% rally in just one week. The altcoin briefly touched $2,500 before pulling back slightly below that level. According to crypto analyst Ali Martinez, Ethereum could be on its way to $5,000 if it clears the current major resistance zone.

The MVRV Ratio formed a golden cross above its 160-day moving average on August 19, indicating growing buying pressure. Additionally, 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.

The trend of token supply moving off exchanges also supports the case for increasing buying pressure. Over $440 million worth of ETH has been withdrawn from exchanges in the past week. However, Ethereum still faces a major resistance zone between $2,722 and $2,970, with 16.70 million previously acquired within this range.

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