The market’s second-largest cryptocurrency, Ethereum (ETH), surged nearly 3% on Wednesday, extending a short-term recovery that has brought 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 X (previously Twitter) that price action is showing “signs of a major trend shift from bearish to bullish.”
On‑Chain Signals Strengthen Breakout Case
Martinez pointed to the altcoin’s weekly chart, where Ethereum appears to be tracing an ascending triangle formation. He noted that ETH’s bounce to $1,800 on February 26 lined up with the triangle’s hypotenuse—an alignment that, in past instances, has preceded bullish continuations.
Similar patterns seen in previous market cycles offer investors reason for optimism. As the price tightens toward the triangle’s apex, historical patterns suggest that a breakout to the upside is more likely.
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The analyst also highlighted on-chain context to bolster the bullish case. Martinez observed that the market value to realized value (MVRV) ratio fell below 0.8 at the same time ETH tested the triangle’s support.
According to his read, that specific MVRV threshold has previously coincided with important buy signals, which makes the recent reset more meaningful than a random bounce.
Adding to the technical narrative, the SuperTrend indicator flipped to bullish for the first time since May of 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 the $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 set out several price bands between market value and realized value that could serve as resistance points if Ethereum continues its recovery in the short, medium, and long term.
Martinez stated that the first significant objective to be reclaimed was $2,356, which was not exceeded in the broader market surge witnessed last week. Mid-term targets at $2,647 and $3,639 came next.
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Looking ahead, the analyst indicated $4,632–the last resistance before reaching all-time highs of $4,956–and $5,624 as longer-term “expansion” zones that would indicate further positive momentum.
Despite the bullish signals, Martinez was careful to temper expectations: he emphasized that a full-blown bull market is not yet guaranteed.
Still, he argued that the convergence of technical support, the MVRV buy signal, and the SuperTrend flip represent the strongest combination of bullish indicators for Ethereum seen in a while.
Featured image from OpenArt, chart from TradingView.com