Ethereum [ETH] Short-Term Target – Is the Resistance at $2,300 Too Strong?

Ethereum MVRV Shows Signs of Recovery, but $2,300 Remains a Strong Resistance Level

Whale interest has grown; however, rising reserves and declining gas usage suggest short-term caution.

Ethereum [ETH]

Recently, Ethereum recovered its realized price of $2,040 on the charts, indicating an optimistic sentiment across the market. This move suggests that Ethereum may enter a recovery phase following its prolonged bear market.

At the time of writing, Ethereum is trading at $2,064.80, having decreased by 0.10% over the past 24 hours, although it has slightly declined by 0.10%.

Historically, when Ethereum crosses its realized price, it marks the beginning of a bullish trend. Therefore, this could be a crucial turning point for ETH. However, it still faces several obstacles that may slow its momentum.

What Does MVRV Analysis Indicate for Ethereum’s Price?

As of writing, the Ethereum MVRV ratio is approximately 1.02. An MVRV ratio below 1 historically indicates that a market bottom is near, while a ratio above 2.4 suggests overvaluation. Therefore, the current positioning of Ethereum’s news indicates that the altcoin has not yet been overvalued in the recovery phase.

On the charts, Ethereum faces substantial resistance at the $2,300 level. According to the MVRV extreme deviation pricing range, this level marks a key obstacle that ETH must clear to sustain a bullish trend. ETH is also trading within a descending wedge channel near the upper boundary. Thus, price action around $2,300 will be critical in determining whether Ethereum’s recovery continues or falters.

Whale Activity and User Activity – What Do They Mean for Ethereum?

Whale activity continues to support the mid-term bullish case for ETH. Notably, BlackRock has recently accumulated $1.25 million in ETH, valued at approximately $25 billion, indicating enhanced institutional interest.

However, chain metrics indicate some mixed signals. Ethereum’s exchange reserves have increased to 18.375 million ETH, rising by 0.18% over the past 24 hours. This increase does not indicate demand but rather suggests growing selling pressure as more ETH is deposited into exchanges, which typically precedes potential profit-taking.

Meanwhile, user activity remains robust, recording 20,913 active addresses, a 0.99% increase during the same period. This rise in active wallets indicates sustained network participation, a positive sign for Ethereum’s fundamental health.

Conversely, Ethereum’s gas usage has sharply declined to 21 billion ETH, down from a recent peak of 22 billion. This may reflect lower trading volume or a drop in smart contract execution—potentially signaling a short-term cooling in network activity.

Ethereum Faces Strong Resistance – What’s Next?

As predicted earlier by Ambcrypto, Ethereum now faces a critical resistance zone between $2,200 and $2,250. Surpassing this area could pave the way for a retest of the $2,400 level.

However, if ETH struggles to maintain its momentum, it may retreat to the $2,000 support level. Therefore, market participants will need to watch for signs of breakout or potential reversal.

Conclusion

Ethereum has shown some strong signs of recovery, with a positive MVRV ratio and growing institutional interest. However, the resistance at $2,300 remains a significant obstacle.

Although ETH has the potential to break through this level, overcoming it will require sustained buying momentum and clearing key obstacles. Given the broader market conditions, Ethereum may face challenges in breaking this resistance in the short term.