Main insights:
Ether’s recovery from a significant support level reinstates $4,500 as a potential target.
MVRV bands indicate ETH’s price remains above support, aiming for a climb to $5,000.
Ethereum’s native asset, Ether (ETH), has surged over 15% two weeks after dropping to a two-month low of $3,435. Various indicators now suggest that ETH could potentially rise towards $4,500 by the end of October.
ETH price bull flag bounce activated
The rebound in Ethereum is taking shape within a bull flag pattern, a formation typically signaling the continuation of an existing uptrend following a brief period of consolidation.
In this instance, the flag is characterized by a descending parallel channel, developing after a steep ascent from its April low around $2,500 to the August peak near $4,950, as illustrated below.
The recent bounce from the channel’s lower boundary near $3,500 aligns with support from the 200-day exponential moving average (200-day EMA; the blue wave), a level historically appealing to dip buyers during bullish markets.
If the recovery momentum persists, ETH could aim for a breakout towards the channel’s upper boundary, approximately in the $4,450-4,500 range in October.
This interim upside target corresponds with analyst FOUR’s double bottom technical formation, which projects ETH’s price reaching the structure’s neckline resistance at $4,750 shortly.
Trader Luca also foresees ETH rallying towards $4,500 (the red area in the chart below), considering it has remained above its “weekly bull market support band,” shown through the yellow area.
Moreover, a breakout beyond this zone could propel the price towards the bull flag target, exceeding $5,200, potentially reaching a new record high by November.
Conversely, a decline below the support confluence, the bull flag’s lower boundary, and 200-day EMA support (the blue wave) around $3,550 could invalidate the pattern, exposing ETH to deeper corrections toward $3,000-3,200.
Ethereum MVRV reinforces $4,500 target
Ethereum’s MVRV Extreme Deviation Pricing Bands indicate that its recent downturn has stabilized near the mean band around $3,900, a level that historically serves as a launching pad for new rallies.
Related: BitMine accumulates $1.5B in Ether since crash despite Lee’s treasury bubble concerns
Every time ETH has rebounded off this midpoint, including early 2021, mid-2023, and early 2024, it has moved toward the +1σ (standard deviation) band, which is currently around $5,000.
This pattern suggests that ETH is in the “healthy correction” phase of its ongoing bull market, not signaling exhaustion. A move towards the $4,500–$5,000 range by late October seems statistically viable if the mean level continues to act as support.
This article does not offer investment advice or recommendations. Every investment and trading move carries risk, and readers should conduct their own research before making any decisions.
