Ethereum has recently experienced a significant increase in its price, rising above the crucial $3,000 mark. This surge has reignited interest in the cryptocurrency market. On-chain analysis suggests that retail investors are adopting a “hold” strategy, resisting the temptation to sell despite Ethereum’s increased value.
Investor Holding Behavior Amid Market Sentiment
Market analysts consider this holding behavior noteworthy, especially in light of the broader market sentiment influenced by the “Trump Trade.” This trend has contributed to reducing risks and enhancing market conditions. Investors seem to view Ethereum as a valuable asset worth holding onto, even at elevated price levels.
Limited Ethereum Deposits to Exchanges
According to CryptoQuant analyst onatt, the trend of holding ETH without significant profit-taking implies that many investors still see the cryptocurrency as “undervalued.” A key factor supporting this observation is the limited inflow of ETH to major exchange deposit addresses like Binance and OKX, suggesting that traders are not moving their assets to sell.
Typically, large volumes of ETH flowing into exchanges signal potential selling pressure. However, this has not been the case, reflecting a cautious yet optimistic outlook among retail market participants.
Key Metric Highlighting Investor Sentiment
Another significant metric highlighted by the CryptoQuant analyst reinforcing this “hold” sentiment is the Spent Output Profit Ratio (SOPR). This metric tracks the profitability of spent coins, and onatt reveals that it remains close to 1. This indicates that most Ethereum transactions are occurring near breakeven levels, demonstrating a lack of substantial profit realization among ETH holders and highlighting a strong “buy and hold” sentiment.
When paired with low exchange inflows, this metric suggests that investors maintain confidence in Ethereum’s long-term growth potential. Furthermore, onatt’s analysis suggests that as long as ETH maintains levels above $2,800, it could pave the way for a swift move toward the $4,000 range.
Current Market Status and Future Predictions
Currently, Ethereum continues to trade just above $3,000. While the asset’s price increase doesn’t match that of Bitcoin, it has managed to maintain stability above this critical psychological level. At the time of writing, ETH has increased by 0.2% in the past day, with a current trading price of $3,100. This price is still 36.4% below its all-time high (ATH) of $4,878, achieved in 2021.
Analysts have suggested that the current market price of ETH represents a notable buying opportunity. A crypto enthusiast known as venturefounder has predicted a “conservative” price target of $10,000 to $13,000 for ETH.
The Road to a Higher Valuation
This could be a transformative cycle for Ethereum, with the potential to reach $10,000 to $13,000, according to some market predictions. The growing interest and confidence among investors suggest that Ethereum might be on the brink of substantial growth.
