Ethereum to Face Less Sell Pressure After This Metric Surpassed 90%

On-chain data from the analytics platform IntoTheBlock shows that Ether (ETH) may face less selling pressure as over 90% of its holders are in profit.

90.8% of $ETH holders are now in profit, the highest since June.

Interestingly, the 9.2% of holders still at a loss hold just 2.8% of the total supply. This suggests that potential sell pressure from this group may have a limited impact as $ETH continues to trend upward. pic.twitter.com/qG4Xgi0Cq3

— IntoTheBlock (@intotheblock) November 28, 2024

IntoTheBlock’s data revealed that 90.8% of ETH holders are in the green, the highest percentage since June. This suggests a reduced likelihood of widespread selling, potentially supporting ETH’s upward momentum.

Meanwhile, only 9.2% of ETH holders are at a loss, and they control just 2.8% of the total supply. IntoTheBlock explained that the concentration means that any selling from this group is unlikely to significantly impact the market.

ETH Stability and Bullish Signals

As Ether continues its bullish trajectory, the dominance of profitable holders could help stabilize its price and reduce downside risks, setting the stage for further upward movement.

Crypto analyst Byzantine General has pointed to several on-chain signals highlighting Ether’s potential for a “monster rally.” One key factor is the significant rise in open interest for ETH, which refers to the total number of unsettled options and futures contracts for the asset.

Byzantine General observed that Ether’s open interest is dominated by non-neutral short positions, suggesting that many traders expect ETH’s value to drop. The analyst sees this as a major opportunity for a “real chance” of a short squeeze, where a sudden price spike would force short sellers to buy back their positions, driving the price even higher.

The prediction aligns with Dan Tapiero, CEO of blockchain investment firm 10T Holdings, who believes ETH is undervalued. He forecasts the asset could surpass $4,000 and reach over $8,000 within the following year.

Growing Interest in Ether

Further highlighting the growing investor interest and optimism surrounding Ether’s future value, the State of Michigan Retirement System has added Grayscale’s Ethereum exchange-traded fund (ETF) to its portfolio. This marks the first investment by a state pension fund in  Ether-based products since its launch in July.

According to a 13F filing, Michigan’s pension fund owns 460,000 shares of Grayscale Ethereum Trust (ETHE), valued at around $10 million, making it one of the fund’s top five investors. Additionally, the fund holds 460,000 shares in the Grayscale Ethereum Mini Trust ETF (ETH), worth approximately $1.1 million.

As per CoinGecko, ETH is trading at $3,592 at the time of writing, marking a more than 37% increase over the past 30 days.