As a seasoned crypto investor with over a decade of experience navigating the digital asset market, I’ve learned to keep a watchful eye on trends and patterns that can signal potential opportunities or pitfalls. Recently, I’ve been intrigued by the behavior of Ether, the second-largest cryptocurrency by market capitalization.
After the Trump Trade impact on the crypto market concluded, various digital currencies like Ethereum have experienced a rise in worth; yet unlike many other coins where investors seem to cash out, Ethereum’s value continues to increase.
Based on an analysis by an anonymous crypto expert named Onatt in a CryptoQuant report, it seems that individual Ethereum investors are choosing to keep their investments rather than cashing out, which might indicate that many people in the market still believe Ethereum is underpriced.
Retail ETH Investors Not Selling
At the moment of publication, Ether was valued at approximately $3,100. Over the past day, it experienced a minor rise of 0.2%, but over the last week, it dropped by 2.7%. However, it’s important to note that it has performed quite well in the last month, surging by 17.76%. Despite its significant 38% growth this year, investors have continued to maintain their positions.
The fact that investors aren’t selling their cryptocurrency assets is evident from the minimal funds flowing into withdrawal accounts on significant platforms such as Binance and OKX. Typically, larger deposits into these accounts indicate that traders are transferring their assets for the purpose of cashing out or realizing profits.
Furthermore, the Ethereum Spent Output Profit Ratio (SOPR) remains below 1.10, suggesting that most Ether trades occur around the break-even point, resulting in only modest returns for investors.
According to the analysis by CryptoQuant, these indicators collectively show a widespread “buy-and-hold” attitude among investors in the market, fueled by their faith in Ethereum’s long-term prosperity. Even with the recent market fluctuations, the unwillingness of participants to offload their ETH suggests that its current value remains appealing, hinting at potential growth opportunities in the short term.
Can ETH Hit $4K in the Short-term?
According to Onatt, ETH might surge to $4,000 soon if its price consistently stays above $2,800. However, Ki Young Ju from CryptoQuant has a different perspective. In a tweet posted on Wednesday, he suggests that the future performance of Ether is closely tied to the amount of revenue generated by Web3 applications through stablecoins.
According to the founder of CryptoQuant, Ethereum’s performance relative to Bitcoin has been less strong recently, as indicated by the ETH-BTC Net Unrealized Profit/Loss (NUPL) gauge reaching its lowest point in four years.
While there might be varying long-term outlooks on Ethereum, and some consider its present situation as a chance for “ETH enthusiasts,” Ju expresses skepticism that the underperformance problem will be addressed quickly due to the heavy debt burden within its ecosystem.
For a period of one year, I personally prefer Bitcoin more, but as regulations become clearer, Ethereum might start looking more attractive,” Ju said.
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2024-11-22 07:32