61% of Ethereum Holders in Profit as Selling Pressure Eases

Blockchain intelligence platform IntoTheBlock has highlighted a metric revealing that 61% of  Ethereum (ETH) holders are currently in profit. The figures come amid a broader market correction, with Ethereum and several other altcoins seeing significant price declines. Over the last 24 hours alone, ETH dropped by over 4%, pushing its trading price to around $2,300.

61% of Ethereum Holders Are Profitable

IntoTheBlock’s data, tracking the Historical In/Out of the Money since 2016, illustrates the fluctuations in ETH holders’ profitability over time. After the 2017 market cycle, the percentage of ETH holders in profit dropped to as low as 3%. Such dramatic declines typically coincide with steep price drops, as many investors sell off their holdings in an attempt to secure gains.

📊 61% of Ether holders are currently in profit.

During the recent bear market, the percentage of profitable holders dropped to a low of 46%, while after the 2017 cycle, it fell to just 3%.

This comparison reveals two key insights:

Increased Resilience: Ethereum's current… pic.twitter.com/GqfIA7tgAi

— IntoTheBlock (@intotheblock) September 16, 2024

During the 2019-2020 bear market cycle, the proportion of profitable ETH holders fell below 10%. However, this trend shifted during the 2021 bull market, where Ethereum reached its all-time high of $4,870, pushing the percentage of holders in profit to record highs.

Earlier this year, another market downturn saw ETH holders in profit drop to 46%. Currently, with 61% of ETH wallets showing gains, there is less selling pressure on investors. This could positively impact the broader market performance, as fewer holders are likely to feel the need to offload their assets.

September Slump and October Rebound Hopes

This month has marked Ethereum’s worst performance since February, as the cryptocurrency fell below the $2,300 mark once again. In a recent analysis, Bitwise CEO Matt Hougan identified three key factors driving the typical crypto market downtrend in September. He noted that risk assets like Bitcoin and Ethereum generally perform poorly this month. 

Hougan also pointed out that market participants often anticipate underperformance in September, which could contribute to its lackluster performance. Despite the current downturn, he remains optimistic about October, expecting a market rebound that could potentially drive assets like ETH to new highs.

Adding to the concern for Ethereum bulls is the ETH/BTC trading pair, which recently fell to its lowest level in 3.5 years. This suggests that ETH has been losing ground compared to Bitcoin, the largest cryptocurrency by market capitalization.