Retail investors continue to hold ETH despite recent surge in assets – CryptoQuant

Since the Trump Trade narrative ran its course in the crypto market, several digital assets, including Ethereum, have increased in value; however, while most coins have seen investors reap 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 rather than taking profits, suggesting that many traders still view the cryptocurrency as undervalued.

Retail ETH investors not selling

Ether was worth $3,100 at press time, with a slight 24-hour increase of 0.2% and a seven-day drop of 2.7%. The cryptocurrency has been doing well on a monthly basis, posting a 17.76% increase. Despite its 38% year-to-date rise, investors have remained persistent in holding onto their positions.

Evidence that investors are refraining from selling their assets can be seen in low entries to deposit addresses for major crypto exchanges such as Binance and OKX. Higher entries to these addresses often mean that traders are moving their holdings for liquidation and profit taking.

Additionally, ETH’s Spent Production Profit Ratio (SOPR) is still below 1.10, indicating that most ether transactions are occurring near equilibrium levels, and investors make minimal profits.

“These metrics collectively reflect strong ‘buy and hold’ sentiment among market participants, supported by confidence in ETH’s long-term growth potential. Despite recent volatility, the market’s reluctance to sell reinforces the belief that the current price of Ethereum is still attractive, with more chances to go higher in the short term,” said the CryptoQuant analyst.

Can ETH reach $4000 in the short term?

Onatt believes that ETH could reach $4,000 in the short term, as long as its price stays above the $2,800 level. However, CryptoQuant founder and CEO Ki Young Ju thinks otherwise. Ju opined in a tweet on Wednesday that ether’s future performance depends on how much revenue Web3 applications can generate through stablecoins.

The CryptoQuant founder noted that Ethereum is underperforming Bitcoin, as seen in the ETH-BTC Net Unrealized Profit/Loss (NUPL) indicator which hit a 4-year low.

While Ethereum’s long-term outlook may differ and the current state of the network may be an opportunity for “ETH believers,” Ju believes the asset’s underperformance issue is unlikely that it is resolved soon because the ecosystem is very exploited.

“Over a 1-year period, I find it less attractive than Bitcoin, but it could gain appeal as regulations take shape,” Ju added.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

LIMITED OFFER for CryptoPotato Readers on Bybit – Use this link to register and open a FREE $500 position with any currency!