This On-Chain Signal Just Flipped Bullish for Ethereum – What's Next for ETH Price?

Ethereum holders can be fairly happy with the price action in recent weeks since the price went from $1,500 local lows to around $2,600 at press time.

Crypto traders can be happy with the recent price action in the market, especially those who prefer focusing on one coin, and that coin is Ethereum.

The price went from $1,500 local lows to around $2,600 at press time. Also, one on-chain indicator just flipped bullish, according to a new analysis by Ali Martinez, who is a very popular crypto analyst.

Ethereum Has Finally Flipped Into Positive Momentum

The good news is that the MVRV (Market Value to Realized Value) has flipped into positive momentum on the 4-hour chart, which is a key metric that tracks whether the average ETH holder is in profit or not.

This flip could be setting up the market for another leg higher. The MVRV ratio compares Ethereum’s market price to the average price at which all ETH was last moved on-chain.

When the ratio crosses above its 160-day moving average, it usually signals a trend reversal. That’s exactly what just happened. After months of staying below the red line, the MVRV has now jumped above it, marking the first positive momentum signal since late 2024.

At the same time, Ethereum’s price on the 4-hour chart shows strong signs of bullish structure. ETH rallied from around $2,000 to nearly $2,720 between May 8 and May 12.

Since then, the Ethereum price has entered a healthy consolidation phase, currently holding above $2,550. The RSI is hovering around 62, which suggests there’s still room for upside before hitting overbought territory.

What traders are now watching is the $2,700 resistance level, which also aligns with the 200-day moving average on the 4-hour timeframe. A clean breakout above that level could open the door to a push toward $2,850 and beyond.

If the bullish momentum continues, that move could happen sooner rather than later. But there’s also a possibility for a short-term pullback.

If ETH fails to hold above $2,520, we might see a dip toward $2,450 before the next big move. Still, with on-chain data turning green and price action holding steady, the overall trend remains in the bulls’ favor.

Ethereum’s recent flip into positive MVRV momentum is a strong signal. It doesn’t necessarily guarantee a rally, but it does indicate that the average investor is back in profit, and sentiment is shifting.

The next few days will be crucial in confirming whether ETH is ready to break through resistance or if it needs more time to build strength.

Either way, momentum seems to be returning to Ethereum’s side.