Even though Ethereum (ETH) hasn’t delivered the gains many investors anticipated, recent data reveals that holders of the altcoin remain resilient and optimistic. This is despite the Ethereum Foundation’s recent selling activities, which initially raised concerns within the market.
Ethereum Foundation Continues to Sell ETH
Earlier today, the Ethereum Foundation sold 100 ETH for approximately $262,474, adding to its sell-offs over the past few months. So far, the foundation has sold 3,766 ETH this year, valued at $10.46 million. In September alone, it liquidated 1,250 ETH at an average price of $2,777, amounting to $3.06 million.
These consistent sales might be strategic profit-taking or could be aimed at covering operational costs. While the increased market supply could potentially impact Ethereum’s price, holders remain unfazed.
Holders Remain Optimistic: NUPL and HIOM Data
According to the Net Unrealized Profit/Loss (NUPL) metric from Glassnode, ETH holders remain optimistic about the cryptocurrency’s potential. The NUPL measures investor sentiment, ranging from capitulation to euphoria. Currently, ETH holders are situated in the “optimistic” region, indicating confidence in future price increases.
Additionally, the Historical In/Out of Money (HIOM) metric shows that the proportion of ETH holders in profit has increased from 60% on September 16 to 64.37%. This increase in unrealized gains suggests that market participants remain hopeful, which could attract more buying activity and drive ETH’s price higher.
ETH Price Prediction: A Move Toward $3,000?
A glance at Ethereum’s weekly chart reveals that the Commodity Channel Index (CCI) has been increasing. The CCI, a technical indicator that compares the current price to its historical average, indicates a potential upward price movement when it rises.
With ETH currently priced at $2,632, an ongoing increase in the CCI could push the asset toward the $3,255 mark. However, a decrease in the CCI would indicate market weakness, potentially halting the upward momentum.
In Summary
Despite the Ethereum Foundation’s recent sales, ETH holders appear to remain optimistic, driven by positive NUPL data and an increase in the HIOM ratio. Technical indicators also suggest the possibility of a rally toward the $3,000 range, further bolstering investor confidence.
