Ethereum is on the move at the time of writing as bulls struggle to build momentum and push the coin above immediate resistance levels around $2,400 and $2,800. Despite this, most ETH holders are optimistic, expecting prices to turn around and surge higher, even surpassing July highs around $3,500.
61% of ETH holders are in the money
Amidst this development and the general lull, data from IntoTheBlock shows that 61% of all ETH holders are in the money. The fact that over 50% of all ETH holders are in the green despite the coin losing nearly 35% from July highs and nearly 45% from 2024 highs indicates resilience, especially in the face of determined bears.
Technically, the resilience of ETH holders indicates that a wave of optimism is sweeping its ecosystem. According to IntoTheBlock, this development means that at current levels, more ETH holders are making money, much more than during bear market cycles. Then, profitability tends to drop drastically.
To put things into context, IntoTheBlock analysts note that during the 2019/2020 period, when prices fell, the percentage of profitable holders fell to as low as 10% at one point.
Additionally, during the last bear market, the percentage of ETH holders making money dropped to 46%. However, this is much higher than the 3% recorded when ETH prices fell as low as 3% at the height of the 2018 bear market.
Ethereum Holders Confident, Support at $2,290 and $2,360
ETH’s profitability percentage has evolved over the years, indicating a maturing market where holders are still confident about the future.
According to Dune data, there are 128,804,395 ETH in circulation. Of these, the top 1,000 addresses control over 49.1 million, or 38.15%. If IntoTheBlock data is to be believed, most of these whales are in the green and making money. Therefore, they will not be incentivized to sell, which will increase the pressure on ETH.
Looking more closely at the on-chain data, one analyst notes that ETH has critical support between $2,290 and $2,360. In this area, nearly 1.9 million addresses have purchased and are currently holding around 52.3 million ETH.
Millions of ETH were bought at this level, meaning it is a critical loading zone. If broken, the analyst predicts steep losses that will send the coin below the August lows at $1,800 in a bearish trend continuation formation.
Main image of DALLE, chart from TradingView
