How do we go back to being friends?

I've been really good friends with this guy for a year now, and a few months ago something sort of sparked between us; we hooked up, and started hanging out more and more, one on one, dates, etc., I've been nervous about it ruining our friendship, but also still really happy about the natural progression of things, and then the past month he's been distant. I assumed that it was because I moved next door.. he knew exactly what I wanted and was looking for, asked me how I felt about it and suggested that I should go look at it, and sure enough it was everything I wanted and more. I definitely would not have moved there if it wasn't. I also asked him how he was feeling about it, and he said "I'm really excited for you and I'm glad it worked out! I'm sorry if I've seemed distant at times, I have moments of really high highs and really low lows and just need more space to recharge, but I'm psyched to be your neighbor". And we still kept going on dates, but he kept getting a little more distant; he didn't want to have sex or hang after a few dates in a row (which felt weird living literally right next door), so I asked him if he was sure he was okay with me being here, and said that I've been trying to gauge his boundaries. he said that he feels really bad about being distant with me, and that it isn't directed at me and has nothing to do with me being next door, he's been distant with everyone and just wants to get back on track and not date right now. He said he loves spending time with me and doesn't want to lose that, he just wants to do it as friends and doesn't want to be in a relationship. We had plans to go to a show two days later, but when he reached out about it I told him I was going to another show instead, and we haven't really talked since. I care about him and our friendship, I don't want to lose it, but I am still a little hurt, and am just not sure what to do go back to that right now. Space? And then reach out when I'm ready? Or should I let him?

How do we go back to being friends?
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