Since the Trump Trade narrative ran its course in the crypto market, several digital assets, including Ethereum, have surged in value; however, while most coins have seen investors take profits, the same cannot be said for ETH.
According to a CryptoQuant report by pseudonymous analyst Onatt, retail ETH investors appear to be holding their positions instead of taking profits, suggesting that many traders still see the cryptocurrency as undervalued.
Ether was worth $3,100 at press time, with a 24-hour slight increase of 0.2% and a seven-day plunge of 2.7%. The cryptocurrency has done well monthly, recording a 17.76% rally. Despite its 38% surge year-to-date, investors have remained persistent in holding their positions.
The evidence that investors are refraining from selling their assets can be seen in low inflows to deposit addresses for major crypto exchanges like Binance and OKX. Higher inflows into these addresses often signify that traders are moving their holdings for liquidation and profit-taking.
In addition, the Spent Output Profit Ratio (SOPR) of ETH is still less than 1.10, indicating that the majority of ether transactions are happening near breakeven levels, with investors realizing minimal profits.
Onatt believes that ETH could reach $4,000 in the short term, provided its price remains above the $2,800 level. However, CryptoQuant founder and CEO Ki Young Ju thinks otherwise. Ju opined in a Wednesday tweet that ether’s future performance depends on how much revenue Web3 apps can generate through stablecoins.
The CryptoQuant founder noted that Ethereum is underperforming against Bitcoin, as seen in the ETH-BTC Net Unrealized Profit/Loss (NUPL) indicator hitting a 4-year low.
Although Ethereum’s long-term perspectives may differ and the current state of the network may be an opportunity for “ETH believers,” Ju thinks the asset’s underperformance issue will unlikely be solved soon because the ecosystem is heavily leveraged.
The post Retail Investors Persist in Holding ETH Despite Asset’s Recent Surge: CryptoQuant appeared first on CryptoPotato.
According to a CryptoQuant report by pseudonymous analyst Onatt, retail ETH investors appear to be holding their positions instead of taking profits, suggesting that many traders still see the cryptocurrency as undervalued.
Retail ETH Investors Not Selling
Ether was worth $3,100 at press time, with a 24-hour slight increase of 0.2% and a seven-day plunge of 2.7%. The cryptocurrency has done well monthly, recording a 17.76% rally. Despite its 38% surge year-to-date, investors have remained persistent in holding their positions.
The evidence that investors are refraining from selling their assets can be seen in low inflows to deposit addresses for major crypto exchanges like Binance and OKX. Higher inflows into these addresses often signify that traders are moving their holdings for liquidation and profit-taking.
In addition, the Spent Output Profit Ratio (SOPR) of ETH is still less than 1.10, indicating that the majority of ether transactions are happening near breakeven levels, with investors realizing minimal profits.
Can ETH Hit $4K in the Short-term?
Onatt believes that ETH could reach $4,000 in the short term, provided its price remains above the $2,800 level. However, CryptoQuant founder and CEO Ki Young Ju thinks otherwise. Ju opined in a Wednesday tweet that ether’s future performance depends on how much revenue Web3 apps can generate through stablecoins.
The CryptoQuant founder noted that Ethereum is underperforming against Bitcoin, as seen in the ETH-BTC Net Unrealized Profit/Loss (NUPL) indicator hitting a 4-year low.
Although Ethereum’s long-term perspectives may differ and the current state of the network may be an opportunity for “ETH believers,” Ju thinks the asset’s underperformance issue will unlikely be solved soon because the ecosystem is heavily leveraged.
The post Retail Investors Persist in Holding ETH Despite Asset’s Recent Surge: CryptoQuant appeared first on CryptoPotato.
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