Ethereum has experienced a noticeable price increase recently, trading above the psychological price of $3,000, which has reignited interest in the crypto market. According to on-chain analysisIt appears that retail investors are adopting a ‘hold’ strategy and resisting the urge to sell despite the rise in ETH’s value.
Market analysts view this holding behavior as significant, especially given the broader market sentiment affected by the so-called ‘Trump Trade’, which has helped reduce risks and improve market conditions.
Limited Ethereum deposits on exchanges
According to Onatt, the CryptoQuant analyst behind the analysis, this trend of holding ETH without significant profit-taking suggests that many investors still view the cryptocurrency as ‘undervalued’ even at its high levels.
Another factor Onatt mentioned in support of this observation is the limited inflow of ETH to major deposit addresses such as Binance and OKX, indicating that traders are not moving their assets to sell.
In general, large amounts of ETH on exchanges usually indicate impending selling pressure. However, this has not been the case, reflecting the cautious but optimistic outlook among retail market participants.
Key metric that highlights investor sentiment
Another key metric that the CryptoQuant analyst highlighted that reinforces this “hold” sentiment is the Spent Output Profit Ratio (SOPR), which tracks the profitability of coins issued.
Onatt reveals that this metric remains close to 1, indicating that most Ethereum transactions are taking place near break-even levels. This data indicates a lack of significant profit realization among ETH holders, highlighting strong “buy and hold” sentiment.
According to the analyst, this metric, coupled with low exchange rate inflows, also suggests that investors remain confident in Ethereum’s long-term growth potential.
Moreover, Onatt’s analysis suggests that as long as ETH maintains a level above $2,800, it could pave the way for a quick move towards the $4,000 range.
So far, Ethereum is still currently trading above $3,000. Although the asset’s price appreciation is nowhere near that of BTC, it has managed to maintain stability above the crucial psychological price level.
At the time of writing, ETH is up 0.2% over the past day with a current trading price of $3,100 – a price that puts Ethereum down 36.4% from its all-time high (ATH) of $4,878 recorded in 2021.
Analysts have suggested that ETH’s current market price represents a notable buying opportunity for the asset. A crypto enthusiast known as a venture founder has specific characteristics predicted a “conservative” price target of $10,000-$13,000 for ETH.
$ETH: away to $13k
This could be a transformative cycle #Ethereum.
$10k-$13k is conservative. pic.twitter.com/q3Er9EG9gS
— Venturefounder (@venturefounder) November 19, 2024
Featured image created with DALL-E, Chart from TradingView
