Ethereum’s Dance: Why $3K Holds Like a Stubborn Mule 🐂💎

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Key takeaways:

  • Ether’s profitability metrics have descended to depths that, in the annals of history, have heralded local bottoms. 🌊

  • Ethereum fees surge by 83% weekly, a clarion call of onchain demand. 📈

  • ETH supply on exchanges dwindles to a nine-year low, with $3,000 standing as a bastion of price support. 🏰

In the tempestuous sea of markets, Ether (ETH) found its anchor at $3,000, as bulls, with the tenacity of a Russian peasant, defended this threshold. Since then, ETH has ascended to heights above $3,300, casting doubt on the likelihood of a further descent. This resilience is buttressed by a tapestry of onchain and technical data, woven with threads of optimism and pragmatism.

Ether traders, in their folly, realize losses

On-chain data reveals that Ether’s Spent Output Profit Ratio (SOPR) has plummeted to 0.96, a testament to the fact that ETH investors are parting with their holdings at a loss. 😢

This spectacle suggests that the ongoing correction in ETH’s price is driven by traders, gripped by panic and extreme fear, realizing their losses. A tragic comedy, if ever there was one.

SOPR, that enigmatic metric, 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 below 1 whispers of capitulation or a market bottom, a siren’s call to buy. 🧭

Historically, this scenario has often been the harbinger of price recoveries. When SOPR fell to 0.86 following Ether’s plunge to $1,500 in April, it was followed by a 91% resurgence in price to $2,700 four weeks later. Thus, some investors viewed the drop to $3,000 as an opportunity to buy, like a peasant seizing a fleeting moment of prosperity. 🌱

Ethereum’s onchain data sings of renewed demand

On-chain activity over the last seven days paints a portrait of resilience. Ethereum, like a noble lord, continues to expand its dominion over competitors, securing roughly 56% of the market’s total value locked (TVL), according to DefiLlama. 🏰

More telling still, network fees are ascending, a reflection of stronger demand for blockspace, which fortifies Ether’s price above $3,000. A testament to its enduring allure.

Ethereum’s fees over the past seven days climbed to $9.23 million on Friday, an 83% increase from the prior week. In contrast, Solana’s fees rose a mere 9.1%, while BNB Chain revenues declined by 41%. This divergence underscores Ethereum’s dominance in decentralized exchange volumes, which climbed 22% in October, according to DefiLlama. A triumph, albeit with a touch of schadenfreude. 😏

The dwindling ETH supply on exchanges

ETH supply on exchanges continues its descent. Data from Glassnode reveals that the ETH balance on exchanges decreased by 22% from 17 million ETH on Aug. 24 to a nine-year low of 13.14 million ETH on Friday. A retreat as inevitable as the Russian winter. ❄️

This metric dropped sharply over the last seven days, as deposits to trading platforms fell by over 31%. This decline coincides with a 14% fall in Ether’s price over the same period. A symphony of supply and demand, played out in the grand theater of markets.

A decreasing ETH balance on exchanges indicates that there is less supply available for immediate sale. A strategic withdrawal, if you will. 🛡️

ETH price stands on the precipice of strong support above $3,000

Data from CryptoMoon Markets Pro and TradingView reveals that bulls are striving to maintain the ETH price above a key support zone, as illustrated in the chart below. A battle of wills, fought in the trenches of technical analysis.

This zone, between $3,000 and $3,150, is defined by the 100-week and 50-week simple moving averages (SMAs), respectively. These trendlines have supported the price since July, like faithful retainers. 🛡️

However, a fall below this level could trigger a fresh downtrend, with the first line of defense emerging from the $2,800 support level. Lower still, the bulls might retreat to the 200-week SMA around $2,500, where they could mount a stout defense. A strategic retreat, in the face of adversity. 🚀

“You want to see buyers stepping in and pushing for control around the $3.2K-$3.4K area,” remarked crypto analyst Skew in a recent X post. A call to arms, if ever there was one. ⚔️

A drop below this level would be a “clear invalidation for $ETH,” the analyst added, with the gravity of a prophet foretelling doom. 😱

Fellow analyst Crypto Patel opined,

“Holding $3,000 support is key, as it could spark the next bullish wave.” 🌊

As CryptoMoon reported, Ethereum traders have flipped bullish, as evidenced by the uptick in positive comments on social media, which was interpreted as a good sign that the ETH price was back on track. A glimmer of hope, in a world of uncertainty. ✨

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2025-11-07 18:06