Short-Term Investors and SOPR Dip Hint at Ethereum Rebound
Ethereum price fell 6.2% over the past week but held steady with a 0.1% rise in the last 24 hours. On-chain data shows renewed activity from short-term investors. Wallets holding ETH for one week to one month rose from 6.9% to 9.19% of the supply, while those holding for one day to one week jumped 67%. The Spent Output Profit Ratio (SOPR) dropped from 1.11 to 1.03, suggesting reduced profit-taking. A similar SOPR dip on July 31 preceded a 31% surge in Ethereum price. Technical analysis on four-hour charts reveals an inverse head-and-shoulders pattern with a neckline near $4,379. A break above $4,443 could target $4,770, while a drop below $4,207 would invalidate the bullish setup. These signals point to a potential market turnaround for ETH, as key thresholds and technical patterns align to indicate a price bottom and possible upward move.
Bullish
Recent on-chain and technical indicators support a bullish outlook for Ethereum. The rise in short-term investor holdings signals confidence at lower price levels and hints at a local bottom. The SOPR indicator’s decline to near breakeven echoes the July 31 event, after which Ethereum price surged by 31%. The formation of an inverse head-and-shoulders pattern on the four-hour chart reinforces this view. A break above the $4,443 neckline could trigger further buying, targeting $4,770. However, a move below $4,207 would negate the bullish setup. Overall, these factors suggest a favorable environment for ETH’s short-term rally, while key levels will guide longer-term stability.