Ethereum has recently experienced a noticeable price augment, trading above the psychological price of $3,000, which has renewed interest in the cryptocurrency market. By on-chain analysisretail investors appear to be adopting a “hold” strategy, resisting the urge to sell despite the augment in ETH value.

Market analysts consider this behavior of holding companies significant, especially considering the broader market sentiment influenced by the so-called “Trump Trade”, which helped to mitigate risks and improve market conditions.

Narrow Ethereum deposits on exchanges

According to Onatt, the CryptoQuant analyst responsible for the analysis, this trend of holding ETH without generating significant profits suggests that many investors still view the cryptocurrency as “undervalued” even at its elevated levels.

Another factor that onatt mentioned to support this observation is the circumscribed inflow of ETH to major exchange deposit addresses such as Binance and OKX, which indicates that investors are not moving their assets to sell.

Generally speaking, enormous amounts of ETH flowing into exchanges usually signal impending selling pressure. However, this did not happen, reflecting the cautious but sanguine attitude of retail market participants.

Key indicators highlighting investor sentiment

Another crucial metric that the CryptoQuant analyst highlighted that reinforces this “hold” tendency is the Spent Output Profit Ratio (SOPR), which tracks the profitability of spent coins.

onatt reveals that this ratio remains close to 1, indicating that most Ethereum transactions occur near break-even. This data indicates a lack of significant profit-taking among ETH holders, highlighting the mighty buy-and-hold sentiment.

According to the analyst, combined with low currency inflows, this indicator also suggests that investors maintain confidence in Ethereum’s long-term growth potential.

Moreover, onatt analysis suggests that as long as ETH maintains above $2,800, it could pave the way for a quick move towards the $4,000 range.

So far, Ethereum is still trading above just above $3,000. While this asset’s price growth is not even comparable to BTC’s, it has managed to remain stable above a key psychological price level.

At the time of writing, the price of ETH is up 0.2% over the past day at the current trading price of $3,100 – representing a 36.4% decline in the Ethereum price from the all-time high (ATH) of $4,878 recorded in 2021

Analysts do suggested that the current market price of ETH represents a significant opportunity to purchase this asset. The cryptocurrency enthusiast, known as the founder of the venture, has something special predicted “conservative” target price for ETH at 10-13 thousand. dollars.

$ETH: road to 13 thousand dollars

This can be a cycle of transformation for #Ethereum.

10-13 thousand dollars is a conservative amount. pic.twitter.com/q3Er9EG9gS

— venture founder (@venturefundator) November 19, 2024

Featured image created with DALL-E, chart from TradingView