Ethereum’s Profitability on the Rise
Ethereum (ETH) has been making headlines recently, and this time, it’s a favorable trend for investors. Recent statistics indicate that more than 90% of Ethereum holders are currently in profit as the cryptocurrency’s price has surged to significant levels. According to the analytics firm IntoTheBlock, this positive momentum presents the best opportunity for Ethereum holders to realize gains in the past five months.
Bitcoin’s Influence and Ethereum’s Momentum
Ethereum’s recent price increase was partly inspired by Bitcoin’s resurgence above $96,000, propelling Ethereum to $3,680, marking its highest level since June. While Bitcoin paved the way, Ethereum’s strong momentum is evident as it continues to break through resistance levels with ease. Despite trading 25% below its all-time high (ATH) of $4,890, Ethereum’s underlying strength and market sentiment suggest a promising outlook.
Whale Confidence and Long-Term Holding
Delving deeper into Ethereum’s investment patterns reveals more positive news. Only 9.2% of ETH holders are currently experiencing losses, and they hold a mere 2.8% of the total supply, indicating that their potential selling pressure may have a minimal impact on the market’s upward trajectory.
Additionally, Ethereum’s base of long-term holders remains robust. Approximately 74% of ETH holders have been holding for more than a year, highlighting their confidence in the token’s long-term value. Given that only 23% of ETH was acquired in the past year and a mere 3% in the last month, most investors appear committed to holding for the long term.
Decreasing Supply and Bullish Momentum
Another factor bolstering Ethereum’s bullish outlook is the continuous decline in its supply on centralized exchanges. Analysts note that this trend has persisted since last year, reducing the amount of ETH available in centralized reserves. As demand outpaces supply during a bullish phase, prices are likely to rise.
Ethereum’s recent price surge has also been supported by substantial inflows into spot ETFs, exceeding $90 million. These institutional investments underscore growing confidence in Ethereum’s future prospects.
Ethereum: Path to ATH Appears Clear
Ethereum is currently outperforming the broader cryptocurrency market, boasting a weekly gain of 12%. Its ETH/BTC ratio has increased by 18%, showcasing its relative strength compared to Bitcoin. Analysts suggest that if Ethereum can retest and surpass the $4,000 resistance level, the path to reaching its all-time high will become increasingly plausible.
With a 5.92% increase over the previous day, Ethereum’s price has slightly decreased to $3,610 at the time of writing. Based on market indicators and sentiment, Ethereum seems poised to revisit its previous highs and potentially forge new ground.
