Ethereum has seen a notable rise in its price recently, trading above the psychological price mark of $3,000, reigniting interest in the cryptocurrency market. According to the series analysisRetail investors appear to be adopting a “hold” strategy, resisting the urge to sell despite the increase in the value of ETH.
Market analysts see this holding behavior as important, especially given the broader market sentiment affected by the so-called “Trump trade,” which contributed to mitigating risks and strengthening market conditions.
Ethereum deposits are limited on exchanges
According to onatt, the CryptoQuant analyst behind the analysis, this trend of holding ETH without making significant profits indicates that many investors still view the cryptocurrency as “undervalued,” even at its high levels.
Another factor mentioned by Onatt that supports this observation is the limited flow of ETH to major exchange deposit addresses such as Binance and OKX, suggesting that traders are not moving their assets to sell.
In general, large amounts of Ethereum inflow to exchanges usually indicate impending selling pressure. However, this was not the case, reflecting a cautious but optimistic outlook among retail market participants.
The key metric that highlights investor sentiment
Another key metric highlighted by a CryptoQuant analyst that reinforces this “hold” sentiment is the Spent Output Profit Ratio (SOPR), which tracks the profitability of coins spent.
Onatt reveals that this measure is still close to 1, indicating that most Ethereum transactions occur near break-even levels. This data indicates a lack of significant gains among ETH holders, highlighting the strong “buy and hold” sentiment.
According to the analyst, when paired with low exchange flows, this metric also indicates that investors maintain confidence in Ethereum’s long-term growth potential.
Furthermore, Onat’s analysis suggests that as long as ETH maintains levels above $2,800, this could pave the way for a rapid move towards the $4,000 range.
As of now, Ethereum is still currently trading just above $3,000. While the asset’s price rally is not close to 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% in the past day at a current trading price of $3,100 – a price tag that puts Ethereum 36.4% below its all-time high (ATH) of $4,878 recorded in 2021.
Analysts have Suggested The current market price of ETH represents a notable buying opportunity for the asset. One cryptocurrency enthusiast known as Venturefounder has a privacy anticipation A “conservative” price target of $10K-$13K for ETH.
$ Ethereum: Road to $13,000
This can be a transformative course for #Ethereum.
$10k-$13k is conservative. pic.twitter.com/q3Er9EG9gS
— Venture Founder (@venturefounder) November 19, 2024
Featured image created with DALL-E, chart from TradingView