Ethereum Price Surpasses $3,000 as Investors Maintain Holding Strategy
Ethereum's price has recently surpassed $3,000, rekindling interest in the crypto market. On-chain analysis indicates that retail investors are adopting a “hold” strategy, refraining from selling despite ETH’s rising value.
Market analysts consider this holding behavior important, particularly due to the "Trump Trade," which has alleviated risks and improved market conditions.
Limited Ethereum Deposits To Exchanges
The CryptoQuant analyst noted that the trend of holding ETH without significant profit-taking suggests many investors view the cryptocurrency as undervalued. Limited inflows of ETH to major exchanges like Binance and OKX further indicate traders are not moving assets for sale.
Typically, large volumes of ETH entering exchanges signal potential selling pressure; however, this is currently not observed, reflecting a cautiously optimistic outlook among retail participants.
Key Metric Highlighting Investor Sentiment
A significant metric reinforcing the "hold" sentiment is the Spent Output Profit Ratio (SOPR), which tracks profitability of spent coins. The SOPR remains close to 1, indicating most transactions occur near breakeven levels, suggesting limited profit realization among ETH holders.
This data implies strong buy-and-hold sentiment and confidence in Ethereum's long-term growth potential, especially with low exchange inflows. As long as ETH stays above $2,800, it could rapidly approach the $4,000 range.
Currently, Ethereum is trading just above $3,000. Despite slower price increases compared to Bitcoin, it has maintained stability above this critical psychological level.
As of now, ETH has increased by 0.2% over the past day, with a current trading price of $3,100, representing a 36.4% decline from its all-time high of $4,878 recorded in 2021.
Analysts have identified the current ETH price as a notable buying opportunity. A crypto enthusiast known as venturefounder has projected a conservative price target of $10k-$13k 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 created with DALL-E, Chart from TradingView