The market’s second-largest cryptocurrency, Ethereum (ETH), surged nearly 3% on Wednesday, extending a short-term rally that took the altcoin to the key $2,160 level.
Market analyst Ali Martinez flagged the move as part of a potentially significant shift in Ethereum’s technical outlook, writing on social media platform
On-Chain Signals Strengthen Breakout Case
Martinez sharp to the weekly altcoin chart, where Ethereum appears to be tracing an ascending triangle formation. He noted that ETH’s rebound to $1,800 on February 26 aligned with the hypotenuse of the triangle – an alignment that in the past has preceded bullish continuations.
Similar trends seen in previous market cycles give investors reason to be optimistic. As price tightens towards the top of the triangle, historical trends suggest an upward breakout is more likely.
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The analyst also highlighted the on-chain context to reinforce the bullish scenario. Martinez observed that the market value to realized value (MVRV) fell below 0.8 at the same time ETH tested triangle support.
According to his reading, this specific MVRV threshold has already coincided with significant buy signals, making the recent reset more meaningful than a random bounce.
Adding to the technical narrative, the SuperTrend indicator turned bullish for the first time since May last year, indicating that momentum may be shifting back in favor of buyers.
Martinez had previously observed in a social media analysis that this suggests that Ethereum’s consolidation or accumulation period may be coming to an end, with $1,800 support playing a crucial role in a scenario where selling pressure emerges and challenges this crucial level.
Ethereum Price Targets Identified
The analyst defined several price ranges between market value and realized value that could serve as points of resistance if Ethereum continues its recovery in the short, medium and long term.
Martinez said the first big target to reclaim was $2,356, which was not breached during the broader market rally seen last week. This is followed by medium-term targets of $2,647 and $3,639.
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Looking ahead, the analyst pointed to $4,632 – the last resistance before hitting all-time highs of $4,956 – and $5,624 as longer-term “expansion” areas that would indicate further positive momentum.
Despite the bullish signalsMartinez was careful to temper expectations: he stressed that a true bull market is not yet guaranteed.
Nonetheless, he argued that the convergence of technical support, the MVRV buy signal, and the SuperTrend reversal represents the strongest combination of bullish indicators for Ethereum seen in some time.
Featured image from OpenArt, chart from TradingView.com
