ETH is currently trading at $3,500, with around 89% of holding addresses in profit.
In the last six days, Ether (ETH) has experienced a decline of over 11%, dropping from $4,000 to $3,500. Despite this, a significant majority of its holders remain in profit. As per a tweet from crypto market intelligence platform IntoTheBlock, approximately 89% of ETH holding addresses are currently profitable.
Majority of ETH Holders Profit Amid Market Conditions
Ether’s price started declining on March 13 following the Dencun upgrade, which aimed to significantly reduce transaction fees for Ethereum-based layer-2 solutions and enhance network scalability.Reports indicate that despite the upgrade, Ethereum network activity and supply dynamics remained favorable initially.
The total supply of Ether decreased, daily transactions surged, and more ETH was staked.Nevertheless, within 24 hours, analysts’ concerns about a price correction materialized as Ether dropped from above $4,000 to below $3,700.
Despite the price decline, where 89% of Ether holders remain profitable, IntoTheBlock uncovered that the largest potential on-chain sell volume is at $3,700. Over 991,000 addresses acquired 4.35 million ETH at this price point.
Forecast for the Price of Ethereum
Should ETH rebound from its current trading range at $3,500, there’s potential for the asset to surge beyond $4,000 and set a new high in the weeks ahead. Conversely, a further dip could see it drop below $3,000. Analysts anticipate potential support around the $3,500 mark, which could initiate a fresh rally.
However, continued decline might push support levels to $3,181 and $2,966.In the short term, whether ETH rallies or not, a significant factor that could drive a surge is the approval of spot Ethereum exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC). The SEC has delayed its decision on various ETF applications until May 23.
Notably, asset manager VanEck suggests that spot Ethereum ETFs could outgrow their Bitcoin counterparts if the SEC approves their launch, citing Ethereum’s market size as comparable to Bitcoin ETFs, potentially attracting more demand.
Meanwhile, Standard Chartered Bank predicts ETH could reach $8,000 by the end of 2024 and $14,000 by 2025.
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