Ethereum is on the rise, as depicted in the daily chart. Following a dip and subsequent recovery last week, the second most valuable coin has surged by almost 25% from its August lows. If the buyers maintain control and manage to surpass and close above $2,600, which is currently the case, it could set the stage for another upward movement towards $3,300 in a continuation of the buying trend.
66% Of All Ethereum Addresses Are In Profit
There is a high likelihood of this price action unfolding. According to data from IntoTheBlock, Ethereum is in an interesting phase and is effectively shaking off the weakness observed in the first half of the week.
IntoTheBlock data points out that 66% of Ethereum addresses are currently in profit at current rates. This development indicates that many holders are making profits despite the volatility witnessed over the past five months and the fluctuations after prices peaked in March 2024.
The fact that a significant number of holders are in profit is a bullish sign and suggests that more ETH holders may be inclined to hold on and observe how the price action unfolds in the days ahead.
In general, when a larger percentage of addresses are in the red and losing money, they might look to sell in a panic to protect their bottom line. However, with prices currently rising, entities that choose to cash out now could potentially miss out on greater gains, based on historical data. According to IntoTheBlock, the last time 66% of all ETH addresses were in profits was in October 2023.
ETH Holders Accumulating, Are Bulls Ready To Take Over?
Around October 2023, based on historical price action, ETH experienced a bounce before embarking on a strong rally in the subsequent months leading up to March 2024, reaching $4,100. While past performance does not guarantee future results, the recent recovery and other market factors may provide a boost to optimistic buyers.
By the end of last week, data from CryptoQuant revealed that addresses holding between 10 and 10,000 ETH as well as those holding between 10,000 and 100,000 ETH were actively acquiring more ETH. Collectively, these groups added 757,000 ETH, creating a positive sentiment among investors.
The increasing accumulation by these entities indicates their optimism for the future, which is a positive sign for the bulls. As of August 12, Ethereum is facing resistance around $2,700, corresponding to the highs from August 5.
In order for the uptrend to continue, there needs to be a decisive breakthrough above this level, preferably accompanied by increasing volume. This breakout could serve as the foundation for a surge that might propel ETH to a high of $3,500 in July 2024, as part of a continuation of the buying trend.
Feature image from Canva, chart from TradingView
