Ethereum ($ETH) has recently experienced a notable price surge, yet retail investors are holding firm, signaling strong confidence in the cryptocurrency’s long-term growth prospects.
Despite market fluctuations, low exchange inflows and a near-breakeven SOPR (Spent Output Profit Ratio) indicate that investors are choosing to hold onto their positions rather than sell.
If Ethereum manages to stay above the $2,800 mark, analysts predict that it could potentially reach $4,000 in the short term, driven by a prevailing “buy and hold” sentiment. This shows that, unlike past cycles, Ethereum is now becoming less correlated with Bitcoin ($BTC), as evidenced by a three-year low in the 180-day Pearson correlation between the two.
Despite $ETH's recent price surge, retail investors are holding their positions, signaling confidence in its long-term growth.
Low inflows to exchanges and the SOPR near breakeven suggest that investors are unwilling to sell.
If ETH stays above $2,800, it could potentially… pic.twitter.com/L2zYsVBcst
— Kyledoops (@kyledoops) November 19, 2024
A 10% increase in Bitcoin’s price, for example, would likely result in only a 3% rise for Ethereum, suggesting that each asset is following its own independent path.
ETH is becoming less correlated with BTC.
The 180-day BTC-ETH Pearson correlation is at a three-year low. A 10% rise in #Bitcoin could result in only a 3% gain for #Ethereum.
Just because BTC is strong doesn't mean you should buy ETH. Each asset is now following its own path. pic.twitter.com/4Dn4QoInXo
— Ki Young Ju (@ki_young_ju) November 19, 2024
Massive Ethereum ETH Movements Into Exchanges And ETFs Data
In a recent move, a significant whale or institution (address 0xbec…D3Ad3) withdrew 20,000 ETH, worth approximately $63.4 million, from Ether.fi and redeposited it into Binance. Over the past 10 months, this address has pulled 63,102 ETH from exchanges, with an average purchase price of $2,993. Currently, 44,083 ETH remains on Binance, with a potential profit of $6.27 million if sold at today’s prices.
巨鲸 / 机构 0xbec…D3Ad3 九小时前从 https://t.co/jeGdzkwpWS 中取出 2 万枚 ETH，随后全部 充值进了 #Binance，价值 6340 万美金
该地址过去十个月内累计从交易所提出 63102 枚 ETH，均价 $2993；近三个月陆续从各大 LRT 中取出，目前累计向币安充值了 44083 枚，若卖出将获利 627 万美金💰… pic.twitter.com/QOKg3CwnY7
— Ai 姨 (@ai_9684xtpa) November 19, 2024
Despite this institutional interest, Ethereum’s spot ETF saw a net outflow of $39.08 million on November 18, which may indicate cautious sentiment among institutional investors.
Bitcoin spot ETF had a total net inflow of $255 million on November 18, BlackRock ETF IBIT had net inflow of $89.325 million, and Fidelity ETF FBTC had net inflow of $59.9544 million. Ethereum spot ETF had a total net outflow of $39.0806 million. https://t.co/59u0BnEqLG
— Wu Blockchain (@WuBlockchain) November 19, 2024
Overall, Ethereum is demonstrating resilience as retail maintain their positions, while institutional movements and market dynamics suggest growing confidence in ETH’s potential for continued growth. However, as ETH and BTC evolve independently, traders should be mindful of their distinct trajectories.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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