Ethereum is moving higher, as seen on the daily chart. After last week’s decline and recovery, the second-most valuable coin is up nearly 25% from its August lows. If buyers take charge today, breaking through and closing above $2,600, as is currently the case, it could anchor the base for another rise towards $3,300 in a buying trend continuation formation.
66% of all Ethereum addresses are profitable
It is highly likely that this price action will come to fruition. According to data from IntoTheBlock, Ethereum is in an intriguing phase and is recovering impressively from the weakness seen in the first half of the week.
Data from IntoTheBlock indicates that 66% of Ethereum addresses are in the green at spot rates. This development means that many holders are taking advantage despite the volatility and ups and downs of the past five months after the price peaked in March 2024.
The fact that a significant percentage of holders are in profit is bullish and may mean that more ETH holders are willing to wait and see how price action plays out in the coming days.
Typically, when a large percentage of addresses are in the red and losing money, they may seek to exit in panic, in a self-preservation mode, thus protecting their bottom line.
While this is also possible now that prices are rising, entities that could cash out now could miss out on even bigger gains, at least if past indications are anything to go by. According to data from IntoTheBlock, the last time 66% of all ETH addresses were profitable was in October 2023.
ETH Holders Are Accumulating, Are Bulls Ready to Take Over?
Around October 2023, looking at historical price action, ETH bounced before rallying sharply in the following months until March 2024, reaching $4,100. While this impressive past performance does not necessarily mean it will repeat itself in the days to come, the recovery of the last few days and other market factors may support optimistic buyers.
At the end of last week, data from CryptoQuant showed Those holding between 10 and 10,000 ETH and those holding between 10,000 and 100,000 ETH were busy buying. Their activity saw these cohorts cumulatively add 757,000 ETH, a huge boost in sentiment.
The fact that these entities are charging suggests that they are optimistic about what lies ahead, which is a positive for bulls. As of August 12, Ethereum is facing headwinds at around $2,700, the highs from August 5.
For the uptrend to continue, a clear close above this level is needed, ideally with increasing volume. This expansion could form the basis for a move higher that could see ETH soar to a high of $3,500 in July 2024 in a buy trend continuation formation.
Main image from Canva, chart from TradingView
