Ethereum Profitability Soars: Is This the Start of a New Bull Run?
Ethereum’s Profitability Surge: A Sign of Renewed Bullishness?
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Ethereum’s price action in recent weeks has been a rollercoaster ride, but the latest data suggests a potential shift towards a bullish market. After a period of consolidation and outflows from Spot Ethereum ETFs, ETH began a steady climb in mid-September, igniting renewed interest among investors.
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This rally has had a significant impact on Ethereum’s profitability landscape. According to on-chain analytics platform IntoTheBlock (ITB), the recent price surge has pushed more than two-thirds of Ethereum holders into the profit zone.
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Understanding In/Out of the Money
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ITB’s “In/Out of the Money” metric is a crucial tool for assessing the profitability of cryptocurrency holders. This metric compares the current market price of Ethereum to the purchase prices recorded for addresses holding the asset. It calculates which holders are in profit, in loss, or at the break-even point (known as “at the money”).
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Profitability Levels Reach a Two-Month High
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Based on ITB’s data, Ethereum has reached its highest profitability levels in nearly two months, a strong indicator of growing bullish sentiment. Last week, the number of Ethereum addresses in profit reached a remarkable 85.03 million, representing 69.38% of all Ethereum addresses. This occurred while Ethereum was trading at around $2,693.
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Furthermore, the data reveals that 2.61 million ETH addresses were at the money, while 34.94 million ETH addresses were experiencing losses. This shift towards profitability signifies a potential turning point in the market.
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Will Profitability Continue to Rise?
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The question on everyone’s mind is whether this surge in profitability will continue into October. With the recent Fed rate cuts and weakening currencies in some parts of the world, the crypto industry is currently enjoying a wave of bullish sentiment.
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IntoTheBlock’s social media handle on X highlights that over 80% of ETH volume is now profitable, suggesting strong buying support at key levels. This bullish outlook suggests that many more addresses and ETH could easily cross into profitability next week.
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A Potential Run to $3,000
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As Ethereum pushes towards higher price levels, the focus will shift towards key psychological barriers, such as the $3,000 mark. For ETH bulls, the first step is to break above $2,700 next week. Achieving this would pave the way for a successful run to $3,000, bringing even more addresses back into profit.
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The current market sentiment and the increase in profitability present a compelling case for continued bullish momentum in the Ethereum market. It will be interesting to see if Ethereum can sustain this upward trend and achieve the ambitious $3,000 target.