ethereum has seen a notable rise in its price recently, trading above the psychological price of $3,000, which has reignited interest in the cryptocurrency market. According to chain analysisRetail investors appear to be adopting a “hold” strategy, resisting the temptation to sell despite the rise in eth value.
Market analysts consider this holding behavior to be significant, especially considering the broader market sentiment influenced by the so-called “Trump Trade”, which has contributed to alleviating risks and improving market conditions.
Limited ethereum deposits to exchanges
According to onatt, the CryptoQuant analyst behind the analysis, this trend of holding eth without significant profit-taking suggests that many investors still perceive the cryptocurrency as “undervalued,” even at its elevated levels.
Another factor Onatt mentioned that supports this observation is the limited inflow of eth to major deposit addresses of exchanges like Binance and OKX, indicating that traders are not moving their assets to sell.
<img src="https://technicalterrence.com/wp-content/uploads/2024/11/Is-Ethereum-Undervalued-Investors-hold-firm-as-price-targets-rise.png" alt="ethereum retail investor participation. ” />
In general, large volumes of eth flowing into exchanges usually indicate impending selling pressure. However, this has not been the case, reflecting a cautious but optimistic outlook among retail market participants.
Key Metric Highlighting Investor Sentiment
Another important metric that the CryptoQuant analyst highlighted reinforces this “hold” sentiment is the Spent Production Profit Ratio (SOPR), which tracks the profitability of coins spent.
onatt reveals that this metric remains close to 1, indicating that most ethereum transactions occur near equilibrium levels. This data indicates a lack of significant profit-taking among eth holders, highlighting a strong “buy and hold” sentiment.
According to the analyst, when combined with low currency inflows, this metric also suggests that investors remain confident in ethereum's long-term growth potential.
Furthermore, onatt analysis suggests that as long as eth maintains levels above $2,800, it could pave the way for a quick move towards the $4,000 range.
Until now, ethereum is still trading above $3,000. While the asset's price rise 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% in the past day with a current trading price of $3,100, a price mark that takes ethereum down 36.4% from its all-time high (ATH) of $4878 recorded in 2021.
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Analysts have <a target="_blank" href="https://x.com/TheMoonCarl/status/1858191244763025687″ target=”_blank”>suggested that the current market price of eth is a notable buying opportunity for the asset. A cryptocurrency enthusiast known as a business founder has particular <a target="_blank" href="https://x.com/venturefounder/status/1858679135566012883″ target=”_blank”>provided a “conservative” price target of between $10,000 and $13,000 for eth.
<blockquote class="twitter-tweet”>
<a target="_blank" href="https://twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” target=”_blank”>$eth: on the way to $13,000
This could be a transformative cycle for <a target="_blank" href="https://twitter.com/hashtag/ethereum?src=hash&ref_src=twsrc%5Etfw” target=”_blank”>#ethereum.
Between $10,000 and $13,000 is a conservative figure. pic.twitter.com/q3Er9EG9gS
– business founder (@venturefounder) <a target="_blank" href="https://twitter.com/venturefounder/status/1858679135566012883?ref_src=twsrc%5Etfw” target=”_blank”>November 19, 2024
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