Ethereum (ETH) has reached a historic profitability milestone: 90.8% of its holders are now profitably, IntoTheBlock data shows. This is the most profitable to date since June and leaves 9.2 percent of holders in the red.
This minority, which doesn’t really represent a significant portion of the supply that makes up Ethereum’s total supply (only 2.8%), also doesn’t pose a threat to the price of Ethereum’s trajectory through sell pressure.
The ETH tokens bought at the unprofitable prices ranged from $3,624 to $4,169, data on chain shows. The 11.42 million wallets which held ETH within this price range in total added up to 3.95 million ETH worth approximately $14.33 billion. The ETH would need a price increase of 33% above its current levels if these tokens were to become profitable.
Ethereum’s Widespread Adoption and Investment
However, in stark contrast, the 134.69 million ETH held by profitable ETH holders collectively represents $488.21 billion. But that staggering sum is spread out into 115.22 million addresses, showing the mass adoption and investment in Ethereum.
From an on chain perspective, ETH is only 10% of addresses and volume away from setting new all time highs. But the price chart tells an order more ambitious story to break its previous peak, ETH would have to jump from $3,622 to $4,868, says Binance.
With Ethereum’s profitability soaring, investors face a key dilemma: Rather it’s a question of sacrificing gains now or waiting to see if these gains can be locked into future new highs. ETH sell offs are quickly picked up by the market, as there is a strong appetite for ETH, meaning it is in high demand as the second largest crypto.
If this is a bullish sentiment, it could be a turning point for Ethereum, teetering on the edge of breaking through historical records. Since unprofitable holders possess a small amount of sell pressure and the market absorbs very well, this is a rather optimistic scenario for ETH’s future price action.
For Ethereum enthusiasts, the question remains: can this wave of profitability drive this crypto to new highs or will cautious profit taking keep the cryptocurrency just comfortable? Only time and the market will see.
