Ethereum’s price recently jumped above $3,000, exciting the crypto world. Interestingly, investors aren’t cashing in—they’re holding onto their ETH. Let’s dive into why.
Holding Steady: Why Aren’t Investors Selling?
On-chain data shows a strong “hold” strategy among retail investors. This is surprising, given the recent price increase. Analysts believe this behavior is significant, especially considering the generally positive market mood. The fact that ETH isn’t flooding exchanges suggests investors believe it’s undervalued, even at the current price.
Limited ETH on Exchanges
Normally, a large influx of ETH to exchanges like Binance and OKX signals upcoming sell-offs. But that’s not happening. This lack of selling pressure points to a cautiously optimistic outlook.
The Spent Output Profit Ratio (SOPR)
Another key indicator, the SOPR, measures the profitability of spent coins. It’s hovering around 1, meaning most ETH transactions are breaking even. This shows that people aren’t taking big profits, further supporting the “buy and hold” sentiment. Combined with low exchange inflows, this suggests strong belief in Ethereum’s long-term potential.
Looking Ahead: Price Predictions
Analysts believe that if ETH stays above $2,800, it could quickly hit $4,000. Currently trading just above $3,100 (a 36.4% drop from its all-time high of $4,878), many see this as a great buying opportunity. Some are even predicting a price target as high as $10,000-$13,000! While that’s a bold prediction, it highlights the bullish sentiment surrounding Ethereum.
