Ethereum Price Prediction: These Two Signals Will Mark the Beginning of ETH’s Next Bull Market
By Alejandro Arrieche | Published: Aug 22, 2026
Key Highlights
- Short liquidations in the crypto market surged to $4.6 billion recently due to significant news from the SEC and Treasury Department.
- Ethereum's on-chain data and trading volumes indicate the potential start of a bull market.
- The long-term price target for Ethereum (ETH) is set at $5,000 if a bullish cycle commences.
Market Overview
Ethereum (ETH) has experienced a remarkable 29% increase over the past week, following the U.S. Securities and Exchange Commission's (SEC) proposal of new regulations aimed at fostering growth in the cryptocurrency sector. This positive sentiment has led to a widespread rally across all cryptocurrencies, resulting in a significant short squeeze that forced many bearish traders to exit their positions.
Liquidation Data
According to data from CoinGlass, liquidations reached $4.6 billion over three days, marking August 18 as the eighth largest day for liquidations in history, with $3 billion lost in the futures market. This reflects the intensity of the market's reaction to the recent developments.
Technical Analysis
Ethereum has successfully broken through two critical resistance levels: the 200-day exponential moving average (EMA) around $2,200 and a horizontal supply area at $2,400. This breakout aligns with a previously identified bullish flag pattern, indicating a continuation of the upward trend.
Signals for a Bull Market
The article identifies two key signals that could confirm the onset of a bull market for Ethereum:
- The MVRV Ratio, which historically indicates a bull market when it crosses above the zero line. Currently, it stands at -12%, suggesting the end of the bearish cycle.
- A significant increase in trading volumes, specifically when the 7-day moving average surpasses the 30-day moving average, indicating rising momentum and buying pressure.
Future Outlook
Should these signals materialize, Ethereum is expected to reach at least $5,000 during this bullish cycle, bolstered by favorable regulatory developments and increased treasury buybacks.