Ethereum appears to be volatile as of writing as bulls struggle to build momentum and push the coin above immediate resistance levels around $2,400 and $2,800. However, most Ethereum holders are bullish, expecting the price to turn the corner and rally, even breaking the July highs around $3,500.
61% of ETH holders are in cash
Amidst this development and general calm, IntoTheBlock data emerged. Offers That 61% of all ETH holders are in the money. That over 50% of all ETH holders are in the green despite the coin losing nearly 35% from its July highs and about 45% from its 2024 highs indicates resilience, especially in the face of determined bears.
Technically, the resistance among ETH holders indicates a wave of optimism sweeping through its ecosystem. According to IntoTheBlock, this development means that at current levels, more ETH holders are making money, which is much higher than in bear market cycles. Then, profitability tends to decline significantly.
To give context, IntoTheBlock analysts noted that during 2019/2020, when prices were falling, the percentage of profitable coin holders at one point dropped to 10%.
Additionally, in the last bear market, the percentage of ETH holders who made money dropped to 46%. However, this was significantly higher than the 3% when ETH prices fell to 3% deep in the 2018 bear market.
Ethereum holders are confident, support lies at $2290 and $2360
ETH’s profitability ratio has evolved over the years, indicating a mature market where holders are still confident about what lies ahead.
according to sand dune dataThere are 128,804,395 ETH in the circulating supply. Of this, the top 1000 addresses control 49.1 million or 38.15%. If IntoTheBlock data is any guide, most of these whales are in the green, making money. As such, they will not be incentivized to sell, which will put further pressure on ETH.
Looking closely at the on-chain data, one analyst says, Notes ETH has crucial support between $2290 and $2360. In this area, nearly 1.9 million addresses have bought and currently hold nearly 52.3 million ETH.
Millions of ETH were bought at this level, which means it is a critical loading zone. If it is broken, the analyst expects heavy losses that will lead the coin to drop below the August lows to $1,800 in a downtrend continuation formation.
Featured image of DALLE, chart from TradingView
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