Bitrabo Editorial
Recent on-chain data indicates that the current surge in Ethereum’s price, surpassing $3,800, has resulted in 90% of Ethereum investors now being in profit.
Strong Profitability for Ethereum Investors Amid ETF Rally
According to insights from the market intelligence platform IntoTheBlock, the recent uptick in ETH’s price has led to a notable shift in investor profitability within the network.
IntoTheBlock uses on-chain data to track holder profitability by analyzing the average acquisition price of each address on the blockchain. If this price is lower than the current value of the cryptocurrency, the investor is deemed to be in profit. Conversely, a higher cost basis indicates a potential loss for the address holder.
The breakdown of Ethereum user profitability post the significant price rally is depicted below:
The graph illustrates that 90% of Ethereum network addresses are currently experiencing unrealized gains following the recent price surge. A noteworthy observation is that no wallets are in a loss position, with 10% of investors at a breakeven state.
Historically, profitable holders tend to be more inclined to sell compared to those in a loss, potentially leading to market sell-offs during periods of high profitability ratios.
Given the current high profitability levels among ETH investors, a scenario of mass profit-taking actions might occur, possibly influencing the ongoing rally.
During bullish markets, Ethereum has exhibited the ability to sustain high profitability among investors for a considerable period as demand continues to absorb profit-taking, until eventually reaching a market peak.
However, if profitability remains elevated for an extended duration, temporary market cooldowns may become more likely. The future price trajectory of Ethereum and the impact of spot ETF excitement in mitigating potential market sell-offs remain to be seen.
ETH Price Movement
Ethereum has surged over 22% in the past 24 hours, crossing the $3,800 mark and reaching its highest price level in more than two months.