Ethereum has seen its fair share of volatility lately. After reaching a weekly high of $2,608, ETH slipped 6%, sparking concerns about whether a broader sell-off is on the horizon. But not all investors are hitting the panic button. Some see the dip as a setup for the next Ethereum price bull run.

Prominent crypto analyst Ali Martinez believes that Ethereum’s recent correction may actually be a healthy sign. Instead of a warning, he views this drop as a springboard for a powerful rally—one that could push Ethereum to $4,000.

So what gives him such confidence?

MVRV Ratio Flashes Bullish Signal

Martinez points to a key on-chain indicator: the Market Value to Realized Value (MVRV) ratio. This metric helps determine whether a cryptocurrency is overvalued or undervalued by comparing current price to the average price investors paid.

Right now, Ethereum’s MVRV ratio has flipped into a bullish zone. Historically, this has often preceded significant upward price moves. When this ratio turns green, it typically signals that ETH is undervalued—at least in the eyes of data-driven investors. That’s good news for those holding or considering buying.

Whale Activity Points to Quiet Confidence

Another reason to stay optimistic? The whales are moving.

In the past month alone, large investors have accumulated over 450,000 ETH. These big holders, often considered the “smart money” in crypto, aren’t usually in it for short-term gains. Their silent accumulation suggests they expect the Ethereum price bull run to gain steam in the near future.

Whales buying behind the scenes is often an early sign of strong market confidence. If history repeats, retail investors could soon follow suit—pushing prices even higher.

Ethereum Withdrawals from Exchanges on the Rise

Supporting this bullish thesis is a sharp drop in ETH reserves on major exchanges. Since April, more than 1 million ETH has been withdrawn from trading platforms.

Why does this matter? When investors move coins off exchanges, it usually means they plan to hold them rather than sell. This reduces overall market supply and lowers selling pressure, which can naturally support or even boost prices.

The combination of whale accumulation and shrinking exchange supply is creating a favorable environment for a potential breakout.

Key Level to Watch: $2,200

Currently, Ethereum is hovering around $2,383. According to Martinez, the key support level to hold is $2,200. If ETH can stay above this line, it keeps the bullish setup intact.

Should the price maintain this base, the next significant resistance levels lie at $3,000 and $4,000. With enough buying interest and market momentum, Ethereum could soon test—and possibly surpass—these targets.

A Breakout from a Long-Term Pattern?

Another expert, analyst Ted Pillows, adds further weight to the bullish outlook. He’s been watching Ethereum’s price movement within a massive triangle pattern that’s been forming since late 2020.

Now, ETH is approaching the upper boundary of this pattern. And that’s where things get exciting.

Since rebounding from $1,400 in recent weeks, Ethereum has rallied more than 60%, showing clear strength and investor interest. But the real test lies ahead. The $4,000 mark has served as a tough ceiling throughout 2024—one ETH has yet to convincingly break.

This level also happens to align perfectly with the top of the long-term triangle. A successful breakout here could spark a much larger rally, potentially putting Ethereum back on track toward previous all-time highs or beyond.

So, is Ethereum price gearing up for a major crypto bull run?

The signs are certainly lining up. From technical patterns and whale accumulation to improving on-chain indicators like the MVRV ratio, ETH appears to be building strength. Holding the $2,200 support zone will be critical in the short term. If it does, and buying momentum grows, analysts believe Ethereum could soon challenge the $4,000 resistance once again.

Of course, the crypto market is notoriously unpredictable. But for now, all eyes are on whether Ethereum can break through its long-standing barrier and begin a new chapter in its price journey.

For crypto investors, this could be the calm before the surge. Whether you’re already holding ETH or considering jumping in, it’s worth watching this unfolding story closely.