The Shift in Ethereum Investor Profitability
Recent data from the market intelligence platform IntoTheBlock reveals a significant shift in investor profitability on the Ethereum network due to the asset’s latest rally.
By analyzing on-chain data, the analytics firm determines the average acquisition price or cost basis of each address on the blockchain to assess profitability.
- If the cost basis is below the current spot value of the cryptocurrency, the investor is considered in profit.
- Conversely, a cost basis lower than the asset’s price indicates a net loss, placing the investor out of profit.
- When the average buying price equals the coin’s current value, the investor is said to be breaking even.
Ethereum Userbase Profitability Status
Following the recent price surge, the breakdown of Ethereum user profitability is as follows:
- 90% of addresses on the Ethereum network are in unrealized gains.
- No wallets are in losses, showing 0% out of the money.
- 10% of investors are at a break-even point.
Historically, profitable holders have shown a tendency to sell, potentially triggering a sell-off in the market. High levels of profitability can lead to price peaks, increasing the likelihood of a mass profit-taking event that may slow down the current rally.
Impact on Ethereum Price
Ethereum has surged over 22% in the past 24 hours, reaching its highest levels in more than two months at around $3,800.
Market Outlook and Next Steps
As Ethereum continues to gather momentum, it will be crucial to monitor investor profitability and any potential sell-off scenarios. The upcoming developments around spot ETFs could influence market dynamics and affect price movements.
Hot Take: Ethereum’s Profitable Run
On-chain data shows 90% of all Ethereum investors are now in profit following the sharp surge that the asset’s price has seen beyond $3,800.
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