As a seasoned crypto investor with a decade of experience under my belt, I can attest to the fact that Ethereum’s current price action is indeed ‘wavy,’ but not in a way that should scare off the bulls just yet. The resilience shown by ETH holders, as evident from the 61% being in profit, is a testament to the strong foundations of this digital asset.
Ethereum is experiencing some turbulence right now as bulls find it challenging to generate momentum, with the coin struggling to surpass the immediate resistance points at approximately $2,400 and $2,800. Despite this, many Ethereum holders remain optimistic, anticipating a price reversal that could see the value skyrocket beyond its July highs of around $3,500.
61% Of ETH Holders In The Money
In the midst of ongoing progress and a period of calm, data from IntoTheBlock indicates that approximately 61% of all Ethereum holders are currently profitable, or “in the money.” This suggests that more than half of these ETH owners are still in the green, even though the coin has dropped by nearly 35% from its July peak and almost 45% from its 2024 high. This robustness is particularly noteworthy given the persistent efforts of bearish market forces.
In simpler terms, the strong resilience shown by Ethereum (ETH) investors suggests a surge of optimism within its community. As reported by IntoTheBlock, this situation indicates that more ETH holders are currently seeing profits than during bear market periods. However, profitability tends to drop significantly in the future.
During the 2019/2020 timeframe, when prices decreased significantly, the number of individuals holding cryptocurrencies who were still in profit dipped down to a minimum of 10%.
Reflecting on my own experience during the previous market downturn, it’s worth noting that approximately 46% of Ethereum (ETH) holders managed to turn a profit. In comparison, this figure was significantly higher than the mere 3% who saw gains when ETH prices plunged as low as rock bottom 3% during the heart of the 2018 bear market.
Ethereum Holders Confident, Support Lies At $2,290 And $2,360
Over time, Ethereum’s profitability ratio has shifted, indicating a maturing market as investors continue to remain optimistic about its future potential.
Based on Dune’s findings, there are approximately 128 million Ethereum (ETH) in circulation currently. The top 1,000 wallets hold more than 49 million ETH, accounting for about 38% of the total supply. If we follow IntoTheBlock’s data, a majority of these large holders are seeing profits, which suggests they may not be motivated to sell. This could potentially put more pressure on the Ethereum market.
Upon examining transaction data on the blockchain, an analyst points out that the Ethereum price appears to have significant support in the range of $2,290 to $2,360. In this area, roughly 1.9 million investors have purchased and currently hold around 52.3 million Ethereum.
Large amounts of Ethereum (ETH) have been purchased here, indicating a significant support area. If this level is breached, according to the analyst, there could be steep declines that would push the coin below its August lows of $1,800 in a bear market trend extension pattern.
Feature image from DALLE, chart from TradingView
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2024-09-17 01:34