As a seasoned crypto investor with a knack for deciphering market trends and a portfolio that mirrors the cryptocurrency universe, I must admit, last week’s Ethereum rally was a breath of fresh air. After weeks of consolidation and ETF outflows, it was heartening to see the price action propel more than two-thirds of Ethereum holders into profitability.
Last week, Ethereum‘s price fluctuations sent conflicting messages, with Spot Ethereum ETFs experiencing an increase in investments. It is worth noting that since mid-September, Ethereum has been steadily rising, representing a 25% surge from its September 6 low of $2,171, reaching $2,715 by September 27.
As a crypto investor, I experienced a refreshing pause in the Ethereum ecosystem due to this recent rally and the expected influx into Spot Ethereum ETFs. Based on on-chain data, the price action over the past week brought many Ethereum wallets into the profitable zone. Specifically, the surge in the rally during the last week significantly increased the profitability of Ethereum from 59% to 69% of all addresses holding it.
Ethereum Addresses See Much-Needed Profitability
Following several weeks of market stabilization and withdrawals from Ethereum ETFs, the price of Ethereum started climbing upward around mid-September, sparking renewed curiosity among investors. As per data from the on-chain analytics platform IntoTheBlock (ITB), this surge in value has left over two-thirds of Ethereum holders enjoying a profit.
The secret to deciphering this evolution revolves around ITB’s “In/Out of the Money” indicator, a vital tool in determining the profitability of cryptocurrency owners. This indicator evaluates the current Ethereum market price against the purchase prices logged for wallet addresses that own the asset.
In this manner, it determines which investors are making a profit, losing money, or just breaking even (often referred to as “at the money”). Using this metric, Ethereum has recently hit its most profitable levels in almost two months, a strong sign suggesting increasing optimism among investors.
The graph below shows that the number of Ethereum addresses in profit reached 85.03 million last week, representing 69.38% of the total Ethereum addresses. At this time, Ethereum was trading at $2,693. Furthermore, the data highlights that at this time, 2.61 million ETH addresses were at the money (neither in loss nor profit), while 34.94 million ETH addresses were in losses.
ETH Profitability To Keep Rising?
Moving forward, it’s quite normal to ponder whether the profits will keep climbing in October. Thankfully, the cryptocurrency market is currently experiencing optimistic trends, particularly considering the recent interest rate reductions by the Fed and the depreciation of certain global currencies.
As reported by IntoTheBlock’s social media account on X, approximately 80% of Ethereum (ETH) trading volume is currently profitable, suggesting robust buying support at crucial points. Given the growing optimism, it’s likely that a significant number of new addresses and ETH will move into profitability in the coming week.
As an Ethereum investor, I’m excited about the upward momentum we’re seeing and anticipate the attention shifting towards significant psychological thresholds, like the $3,000 milestone. The next crucial move for ETH optimists is to surpass the $2,700 mark convincingly in the coming week. This breakthrough could pave the way for a successful sprint towards $3,000, attracting even more investors back into profitability.
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2024-09-30 02:10