Anika Begay
Ethereum is pushing higher, as shown 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 control today, offsetting and closing above $2,600, as is currently the case, it could anchor the base for another rally towards $3,300 in a buying trend continuation formation.
66% of all Ethereum addresses are in profit
The possibility of this price action coming to fruition is highly likely. According to data from IntoTheBlock, Ethereum is in an intriguing phase and is impressively shaking off 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 profiting despite the volatility and ups and downs of the last five months after prices peaked in March 2024.
The fact that a large percentage of holders are in profit is bullish and could mean that more ETH holders will be willing to hold on and see how the price action unfolds in the coming days.
Typically, when a high percentage of addresses are in the red and losing money, they may try to exit in a panic, in self-preservation mode, to protect their profits.
While this is possible even now that prices are rising, entities that could cash out now could miss out on even bigger gains, at least if past guidance is 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 the historical price trend, ETH bounced higher before recovering strongly in the following months until March 2024, reaching $4,100. While this impressive past performance does not necessarily mean it will be replicated in the days to come, the recovery of the last few days and other market factors could support optimistic buyers.
By the end of last week, CryptoQuant data he showed which addresses ETH holders between 10 and 10,000 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 to sentiment.
The fact that these entities are charging suggests that they are optimistic about what lies ahead, a net positive for the bulls. As of August 12, Ethereum faces headwinds around $2,700, or the August 5 highs.
To continue the uptrend, there needs to be a clear close above this level, ideally with increasing volume. This expansion could form the basis of a rally that could see ETH soar to a July 2024 high of $3,500 in a buy trend continuation formation.
Feature image from Canva, chart from TradingView
