Is Ethereum Undervalued? Investors Hold Firm While Price Targets Rise
Ethereum price has experienced a significant surge recently, trading above the psychological $3,000 level, which has reignited interest in the cryptocurrency market. According to the news on the chain analyzeretail investors appear to be adopting a “hold” strategy, resisting the urge to sell despite the rising value of ETH.
Market analysts view this holding behavior as significant, especially given the broader market sentiment affected by so-called “Trump trade”, which helps mitigate risks and strengthen market conditions.
Limited Ethereum deposits to exchanges
According to analysis by Onatt, the CryptoQuant analyst behind it, this trend of holding ETH has not changed significantly. profit taking This suggests that many investors still consider cryptocurrencies to be “undervalued,” even at higher levels.
Another factor mentioned by Onatt to support this observation is the limited amount of ETH flowing into deposit addresses of major exchanges such as Binance and OKX, indicating that traders are not moving the assets out.
Generally speaking, large inflows of ETH into exchanges usually signal impending selling pressure. However, this was not the case, reflecting a cautious but optimistic outlook among retail market players.
Key indicators highlighting investor sentiment
Another major metric highlighted by CryptoQuant analysts as reinforcing this “Hold” sentiment is the Spend Output Profit Margin (SOPR), which tracks the profitability of spend tokens.
Onatt revealed that the indicator remains close to 1, indicating that most Ethereum trading occurs around break-even levels. This data indicates a lack of Significant profits The liquidation of ETH holders highlights the strong “buy and hold” sentiment.
According to analysts, when combined with low transaction inflows, the metric also indicates that investors remain confident in Ethereum long term growth potential.
Additionally, onatt’s analysis suggests that as long as ETH remains above $2,800, it could pave the way for a swift move toward the $4,000 range.
So far, Ethereum is still trading just above $3,000. While the asset’s price gains have been nowhere near as high as Bitcoin’s, it has managed to remain stable above key psychological price levels.
At the time of writing, ETH has gained 0.2% over the past day and is currently trading at $3,100. This price mark puts Ethereum down 36.4% from its all-time high (ATH) of $4,878 set in 2021.
Analysts have suggestion The current market price of ETH represents a significant buying opportunity for this asset. A cryptocurrency enthusiast known as a venture capital founder has a special idea Predictive The “conservative” price target for ETH is $10,000 to $13,000.
$ETH: Road to $13,000
This could be a cycle of change #Ethereum.
$10k-13k is conservative. pic.twitter.com/q3Er9EG9gS
— Venture Founder (@ventureFounder) November 19, 2024
Featured image created using DALL-E, chart from TradingView
