Ethereum (ETH) has been experiencing a bullish trend since September 28, with its price surging from around $3,800 to the mid $4,000 range at the time of writing. Recent data from Binance suggests that ETH went through a “reset” during the second half of September and early October, and it may now be setting its sights on the $5,000 price level.
According to a CryptoQuant Quicktake post by contributor Arab Chain, ETH underwent a healthy reset over the past few weeks. After initially dropping to the $3,800 – $3,900 range, it has now bounced back and is trading in the mid $4,000 level. The Spent Output Profit Ratio (SOPR) for ETH has remained volatile around 1.0, indicating that short-term inflows are meeting the demand for the digital asset.
The chart showing the SOPR for ETH reveals that any price decline is quickly reversed as long as the ratio remains above 1.0. A local bottom was formed in late September near $3,800 – $3,900, followed by a gradual rebound to $4,500. The SOPR has been fluctuating between 0.98 and 1.03, signaling a rotation in position rather than a broad market sell-off.
Currently, Ethereum is showing signs of reaccumulation, with support at $4,000. As long as the SOPR stays above 1.0 and the support level holds, ETH could continue its upward momentum. Arab Chain noted that a sustained break above $4,500 would pave the way for higher targets, while a drop below $4,000 with a SOPR < 1 would indicate that sellers have taken control. In addition to its bullish momentum, ETH’s reserves on exchanges are dwindling as more investors withdraw their holdings for self-custody or staking. ETH whale behavior also suggests a potential price rally, as whales recently acquired $1.73 billion worth of ETH, leading to exchange balances at a nine-year low.
From a technical perspective, Ethereum’s Relative Strength Index (RSI) has given a rare bullish signal, hinting at a possible price appreciation to $8,000. At the time of writing, ETH is trading at $4,471, up 2.6% in the past 24 hours. In conclusion, Ethereum’s recent reset and bullish indicators point towards a potential price surge to $5,000 and beyond. With decreasing exchange reserves and positive whale behavior, ETH could be on track for significant gains in the near future.