Four Reasons Ether Did Not Fall Below $3k, And Probably Won’t

Ether's price drop to $3,000 was likely a buy-the-dip opportunity with ETH set to recover, based on several key market metrics.

Ether’s profitability metrics drop to levels that have historically marked local bottoms.

Ethereum fees up 83% weekly, signalling strong onchain demand.

ETH supply on exchanges is at a nine-year low, with strong price support at $3,000.

Ether’s (ETH) latest sell-off was stopped at $3,000, as bulls aggressively defended this level. ETH has since recovered to current levels above $3,300, increasing the odds that the price was unlikely to drop lower, backed by onchain and technical data.

Onchain data shows that Ether’s Spent Output Profit Ratio (SOPR) has dropped to 0.96, suggesting ETH investors are selling at a loss.

This implies that the ongoing correction in ETH price is driven by traders realizing losses amid panic and extreme fear.

Related: Ethereum flashes buy signs amid whispers of ‘massive bear trap’: Analysts

SOPR measures the profit or loss of spent ETH outputs by comparing the value of coins when they were last moved to their value when they are spent again.

A value of less than 1 might suggest capitulation or a market bottom, potentially signaling a good time to buy.

Source: CoinTelegraph