Ethereum Profit Streak Signals ATH Breakout For Over 90% Of Investors
Ethereum (ETH) is in the news again, but this time there’s good news for buyers. The latest data shows that more than 90% Ethereum Users are now making money as the price of the cryptocurrency has increased to impressive levels. According to IntoTheBlock, this uptrend is the best time in five months for those who own ETH to take profits.
Inspired by Bitcoin’s return above $96,000, the coin jumped to $3,680, its highest level since June. While Bitcoin cleared the way, Ethereum’s momentum was evident as it broke the barrier with ease. Although Ethereum is trading 25% below its all-time high (ATH) of $4,890, Ethereum’s fundamentals and market sentiment point to a bright future.
90.8% $ETH Holders have now taken profits, the highest level since June.
Interestingly, the 9.2% of holders who are still in the red hold only 2.8% of the total supply. This suggests that potential selling pressure from this group may have a limited impact, as $ETH The upward trend continues. pic.twitter.com/qG4Xgi0Cq3
— IntoTheBlock (@intotheblock) November 28, 2024
Whale Confidence and Long-Term Holding
More positive news comes from a closer look at Ethereum investment patterns. Only 9.2% of ETH holders are currently in the red, and they only hold 2.8% of the total number of tokens. This means the market is unlikely to be too affected by any selling pressure caused by these investors.
On top of that, Ethereum’s long-term holder base is also strong. The number of ETH holders who have held it for more than a year has risen to approximately 74%, indicating confidence in the long-term value of the token. Considering that only 23% of ETH was purchased last year and only 3% last month, most investors appear to be holding on to the long term.
Reduced supply, bullish momentum
Another reason for Ethereum’s bullish outlook is the declining supply on centralized exchanges. Analysts say its continued decline since last year has led to a reduction in ETH’s centralized reserves. During a bull market, the more demand exceeds supply, the higher the price.
Ethereum’s recent surge has also been aided by huge Inflows into spot ETFswhose assets exceed $90 million. These institutional investments demonstrate growing trust in Ethereum’s future.
Ethereum: The path to ATH seems clear
ETH has outperformed the larger cryptocurrency market, posting weekly gains of 12%. Its ETH/BTC ratio increased by 18%, indicating its strength relative to Bitcoin. Analysts believe that if Ethereum can retest and break through the $4,000 resistance, the path to all-time highs will become more convincing.
It rose 5.92% from the previous trading day, and the price fell slightly to $3,610, As of writing. Judging from signs and market sentiment, Ethereum has a tendency to rewrite its previous highs to break through further.
Featured images from DALL-E, charts from TradingView
