Ethereum has witnessed a striking rise in its value lately, trading above the mental $3,000 threshold, which has rekindled enthusiasm in the cryptocurrency market. Per on-chain evaluation, retail investors seem to be implementing a “hold” tactic, resisting the temptation to sell in light of the escalation in ETH’s price.
Market experts perceive this holding trend as important, especially in light of the overall market sentiment shaped by the so-called “Trump Trade,” which has assisted in alleviating risks and enhancing market circumstances.
Restricted Ethereum Deposits To Exchanges
According to the onatt, the CryptoQuant analyst responsible for this analysis, this pattern of retaining ETH without substantial profit-taking implies that numerous investors still view the digital asset as “undervalued,” even at its heightened points.
Another factor mentioned by onatt that supports this insight is the scant influx of ETH to prominent exchange deposit addresses such as Binance and OKX, signaling that traders are not relocating their funds for selling.
Typically, considerable amounts of ETH pouring into exchanges signify upcoming selling pressure. Nonetheless, this has not transpired, reflecting a cautious yet positive outlook among retail market players.
Crucial Metric Emphasizing Investor Sentiment
Another significant metric the CryptoQuant analyst underscored, which reinforces this “hold” sentiment, is the Spent Output Profit Ratio (SOPR), designed to monitor the profitability of spent coins.
onatt reveals that this metric hovers around 1, indicating that the majority of Ethereum transactions occur near breakeven points. This data reflects a scarcity of considerable profit realization among ETH holders, underscoring a robust “buy and hold” sentiment.
According to the analyst, when combined with minimal exchange inflows, this metric also points to investors maintaining faith in Ethereum’s long-term growth potential.
Additionally, onatt’s assessment indicates that as long as ETH remains above the $2,800 mark, it could set the stage for a rapid advance towards the $4,000 range.
Currently, Ethereum is still trading slightly above $3,000. While the asset’s price rise does not compare to that of BTC, it has successfully sustained stability above this vital psychological price point.
As of this writing, ETH has risen by 0.2% in the last 24 hours, with a current trading price of $3,100—a figure that places Ethereum 36.4% below its all-time high (ATH) of $4,878 recorded in 2021.
Analysts have indicated that the current market price of ETH represents a notable buying opportunity for the asset. A cryptocurrency enthusiast known as venturefounder has particularly forecasted a “conservative” $10k-$13k price target for ETH.
$ETH: road to $13k
This could be a transformative cycle for #Ethereum.
$10k-$13k is conservative. pic.twitter.com/q3Er9EG9gS
— venturefounder (@venturefounder) November 19, 2024
Featured image generated with DALL-E, Chart from TradingView
