The price of Ethereum has recently risen significantly, breaking through the psychological price of $3,000, reigniting interest in the cryptocurrency market. According to on-chain analysis, despite the increase in ETH's value, retail investors seem to be adopting a 'hold' strategy, resisting the urge to sell.
Market analysts believe this holding behavior is significant, especially considering that broader market sentiment is influenced by the so-called 'Trump trade,' which helps mitigate risk and improve market conditions.
Limit Ethereum deposits to exchanges
According to onatt, the CryptoQuant analyst behind this analysis, the trend of holding ETH without significant profit-taking suggests that many investors still consider this cryptocurrency 'undervalued,' even at high levels.
Another factor mentioned by onatt that supports this observation is the limited number of ETH inflows to major exchange deposit addresses (such as Binance and OKX), indicating that traders are not transferring assets for sale.
Generally, significant ETH inflows into exchanges typically herald imminent selling pressure. However, this is not the case, reflecting that retail market participants remain cautious but
Optimistic attitude.
Key indicators reflecting investor sentiment
Another key indicator highlighted by CryptoQuant analysts that reinforces this 'hold' sentiment is the Spent Output Profit Ratio (SOPR), which tracks the profitability of spent tokens.
onatt revealed that this indicator remains close to 1, indicating that most Ethereum transactions occur near the breakeven level. This data suggests that ETH holders lack significant profit realization, highlighting a strong 'buy and hold' sentiment.
Analysts state that combined with lower exchange inflows, this indicator also suggests that investors maintain confidence in Ethereum's long-term growth potential.
Additionally, onatt's analysis suggests that as long as ETH stays above $2,800, it could pave the way for a rapid move towards the $4,000 range.
So far, Ethereum's trading price remains slightly above $3,000. Although the price increase of this asset is far less than that of BTC, it has still successfully maintained above the key psychological price 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 represents a 36.4% drop from Ethereum's all-time high (ATH) of $4,878 set in 2021.
Analysts state that the current market price of ETH represents a significant opportunity to purchase the asset. A cryptocurrency enthusiast named venturefounder notably predicts a target price for ETH of a 'conservative' $10,000 to $13,000.
