Ethereum has been on a bit of a rollercoaster lately! While this digital gem has seen some lively gains over the past weeks, its retail investors are playing it cool, holding onto their ETH stash instead of cashing in. Why, you ask? Well, it seems they believe it's still got plenty of sparkle left and is undervalued.
Since the Trump Trade buzz swept through the crypto world, Ethereum and a bunch of other digital assets have been riding high. But unlike some, ETH investors are keeping their cards close to their chest, not ready to fold just yet.
A savvy analyst known as Onatt has noticed this trend. According to a report, those holding ETH are in no rush to let go, hinting that many traders feel there's more to be mined from this cryptocurrency.
As of the latest, Ethereum was sitting at a cool $3,100. It saw a tiny lift of 0.2% over 24 hours, but took a slight dip of 2.7% over the week. In the bigger picture, it's had an impressive monthly rally of 17.76%, with a whopping 38% surge since the start of the year. And yet, those diamond-handed investors are sticking with it!
What's the scoop on this holding trend? Well, low deposits into major exchanges like Binance and OKX tell us that folks aren't rushing to sell. Usually, when traders want to cash out, we'd see a lot more action there.
Plus, the Spent Output Profit Ratio (SOPR) for ETH is below 1.10, which means most transactions are just breaking even, with only tiny profits realized. In layman's terms, people are holding on because they see something bigger down the line.
Onatt thinks ETH could be dancing around the $4,000 mark soon, as long as it doesn't dip below $2,800. But wait, there's more! The CryptoQuant boss, Ki Young Ju, has a different take. He reckons ETH's future will hinge on how much revenue those Web3 apps can rake in through stablecoins.
Ju also pointed out that Ethereum isn’t quite keeping pace with Bitcoin, with the ETH-BTC Net Unrealized Profit/Loss (NUPL) hitting a four-year low. Although Ethereum's long-term story might be a page-turner for its fans, Ju believes its current underperformance is a tough nut to crack, partly because the ecosystem is heavily leveraged.
In a nutshell, Ju thinks Bitcoin might outshine Ethereum over the next year, but as crypto regulations take shape, Ethereum could start stealing the spotlight again. Let's see where this thrilling crypto saga takes us!
