Ethereum Eyes Move to $4K as On-Chain Signals Indicate Strong Rally Ahead

Ethereum has retreated after reaching its short-term target of $2,800, but on-chain signals suggest the rally may continue.

Two metrics, trading volumes and the MVRV Ratio, are indicating a potential move to $4K during this cycle. Historically, these signals have predicted strong bullish cycles for Ethereum, with most pushing the price above $4,000.

The recent surge in trading volumes and net inflows to exchange-traded funds (ETFs) linked to ETH also support this prediction. The last three times there was a bullish crossover between the 7-day and 30-day moving average for volumes, Ethereum experienced significant rallies. Similarly, the MVRV Ratio has risen above the zero line four times in the past, marking the beginning of strong bullish cycles.