Ethereum (ETH) has been on an uptrend since September 28, surging from around $3,800 to the mid $4,000 range at the time of writing. According to recent data from Binance, ETH went through a \u201creset\u201d during the second half of September and early October, and may now be eyeing the $5,000 price level.<\/p>\n
According to a CryptoQuant Quicktake post by contributor Arab Chain, ETH underwent a healthy reset over the past few weeks. While the digital asset initially dropped<\/a> to $3,800 \u2013 $3,900 range, it is now trading in the mid $4,000 level.<\/p>\n At the same time, ETH\u2019s Spent Output Profit Ratio (SOPR) remained volatile around 1.0, with multiple spikes above one and a singular outlier, shown in the chart below. It suggests that short-term inflows are generating enough demand to meet the supply.<\/p>\n In simple words, any price decline is quickly reversed as long as the ETH SOPR remains above 1.0. The chart shows a local bottom created in late September near $3,800 \u2013 $3,900.<\/p>\n This local bottom was soon followed by a gradual rebound to $4,500. However, the reversal did not occur at once. Instead, it occurred in multiple stages, with short price corrections that did not go below previous lows.<\/p>\n For most of this period, the SOPR hovered between 0.98 and 1.03, a neutral range that suggests a rotation in position instead of a broad market sell-off. Although some flash highs surged above 1.0, these profit-taking bursts were quickly absorbed by the strong demand for ETH.<\/p>\n Currently, Ethereum is showing signs of reaccumulation. As long as any pullback keeps the SOPR at or above 1.0 and the support level at $4,000 is not breached, ETH could benefit from a continued upside scenario. Arab Chain added:<\/p>\n A sustained break above 4.5K would consolidate demand momentum and open the way for gradually higher targets, while a break below 4.0K with SOPR <1 would be the first clear sign that sellers have taken control.<\/p>\n Besides ETH\u2019s bullish momentum that may propel it to $5,000, the digital asset\u2019s reserves on crypto exchanges continue to decline. Recent analysis found that an increasing number of new ETH investors are withdrawing<\/a> ETH for self-custody or staking.<\/p>\n ETH whale behavior also points toward a potential upcoming price rally for the cryptocurrency. Recently, ETH whales scooped<\/a> as much as $1.73 billion worth of ETH, sending exchange balances to a nine-year low.<\/p>\nETH Reserves On Exchange Continue To Dwindle<\/h2>\n