Ethereum continues to rally, as shown on the daily chart. After a dip and recovery last week, the second most valuable cryptocurrency is up about 25% from its August lows. If buyers take over today, and break and close above $2,600, as is currently the case, it could establish another bullish base towards $3,300 in a bullish continuation formation.
66% of all Ethereum addresses are profitable
This price action is very likely to happen. According to IntoTheBlock data, Ethereum is going through an interesting phase and is impressively shaking off the weakness it saw in the first half of the week.
IntoTheBlock Data Notes 66% of Ethereum addresses are in the green at spot market prices. This development means that many holders of the coin are profiting despite the volatility and ups and downs of the past five months after the price peaked in March 2024.
The fact that a large percentage of holders are making a profit is positive and could mean that more ETH holders are willing to hold onto it and see how the price moves in the coming days.
Typically, when a large percentage of titles are in the red and losing money, they may seek to exit in a panic, in self-preservation mode, to protect their financial results.
While this is also possible now with the price rising, entities that may withdraw their funds now may miss out on even bigger gains, at least if the past is any guide. According to IntoTheBlock data, the last time 66% of all ETH addresses made a profit was in October 2023.
ETH Holders Are Accumulating, Are Bulls Ready to Take It Over?
By October 2023, looking at historical price action, ETH’s value had risen before rising strongly in the coming months until March 2024, reaching $4,100. While this impressive past performance doesn’t necessarily mean it will be repeated in the coming days, the recovery in the past few days and other market factors could support bullish buyers.
By the end of last week, CryptoQuant data was Show Those holding between 10 and 10,000 ETH were busy buying, and their activity added 757,000 ETH, which is a huge morale boost.
The fact that these entities are loading their coins indicates their optimism about what lies ahead, which is positive for investors. As of August 12, Ethereum is facing headwinds at around $2,700, or its highs from August 5.
For the uptrend to continue, there needs to be a sharp close above this level, preferably on high volume. This expansion could form the base for a rally that could take ETH to the July 2024 high of $3,500 in a buy continuation formation.
Featured image from Canva, chart from TradingView
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