Ethereum has experienced a notable uptrend since September 28, climbing from approximately $3,800 to the mid $4,000 range as of this writing. Recent data indicates that ETH experienced a “reset” in the latter half of September and early October, potentially setting its sights on the $5,000 price level. In a recent post, contributor noted that ETH has experienced a healthy reset in recent weeks. Initially, the digital asset saw a decline to the $3,800 – $3,900 range, but it has since rebounded and is currently trading in the mid $4,000 level.
Simultaneously, ETH’s Spent Output Profit Ratio exhibited volatility around the 1.0 mark, featuring several spikes above one along with a notable outlier, as illustrated in the chart below. It indicates that short-term inflows are creating sufficient demand to satisfy the supply. In straightforward terms, any drop in price is swiftly corrected as long as the ETH SOPR stays above 1.0. The chart indicates a local bottom formed in late September around the $3,800 – $3,900 range. This local bottom was quickly succeeded by a steady recovery to $4,500. However, the reversal did not happen all at once. Rather, it unfolded in several phases, featuring brief price corrections that remained above prior lows. Throughout this timeframe, the SOPR remained within the bounds of 0.98 and 1.03, indicating a neutral range that points to a shift in positions rather than a widespread market sell-off. Despite some flash highs exceeding 1.0, these profit-taking surges were swiftly countered by robust demand for ETH.
At this moment, Ethereum is exhibiting indications of reaccumulation. As long as any pullback maintains the SOPR at or above 1.0 and the support level at $4,000 remains intact, ETH could see a favorable continuation of its upward trajectory. A sustained break above 4.5K would solidify demand momentum and pave the way for progressively higher targets, whereas a break below 4.0K with SOPR <1 would serve as the initial clear indication that sellers have seized control. In addition to ETH’s bullish momentum that could drive it to $5,000, the digital asset’s reserves on crypto exchanges are persistently decreasing. Recent analysis indicates that a growing segment of new ETH investors is opting to withdraw their ETH for self-custody or staking purposes.
Recent activity among ETH whales suggests a possible impending price rally for the cryptocurrency. In a significant move, ETH whales have accumulated approximately $1.73 billion in ETH, resulting in exchange balances plummeting to a nine-year low. From a technical standpoint, Ethereum’s Relative Strength Index recently issued a rare bullish signal, indicating a potential price surge to $8,000. At press time, ETH is trading at $4,471, reflecting a 2.6% increase over the last 24 hours.