Ethereum Price May Hold Above $2,000 as Traders Eye Short-Term Recovery

Ethereum's (ETH) recent sell-off was halted at $1,800 as bulls aggressively defended the level. This suggests that traders are confident in the cryptocurrency's long-term prospects.

The Spent Output Profit Ratio (SOPR), a key on-chain metric, has dropped to 0.96, indicating that investors are still selling at a loss. Historically, this has marked local bottoms and preceded price recoveries.

Similar scenarios in the past have led to significant price rallies, including a 246% recovery from $1,500 to an all-time high of $4,950. The MVRV Z-Score, another on-chain metric, also suggests that ETH may have found a bottom at $1,800.