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Market intelligence platform IntoTheBlock has revealed that a huge number of Ethereum (ETH) holders are currently in profit. Despite the bearish pressure on the market, about 61% of holders are profitable. This is a rare feat for Ethereum, as holder profitability is typically not this high during bear markets.
The percentage of holder profitability crumbled to only 46% during the previous bear market, according to IntoTheBlock. Moreover, it went to a record low of 3% after the 2017 market cycle. These figures are alarming, but their comparison with the current numbers shows a shifting scenario for Ethereum and its millions of holders.
As 61% of ETH holders remain profitable even during downturns, the current market cycle tells us about the growing resilience of Ethereum over the years. Moreover, rising profitability will eventually increase investor confidence in the leading altcoin. This can encourage more investors to jump on the ETH bandwagon.
IntoTheBlock further revealed that the profit-making wallets of Ethereum briefly witnessed a dip of around 10% in the 2019-2020 cycle. If a similar situation occurs now, the ETH price can go down to hit bear market lows. However, the current market scenario and Ethereum’s growing resilience reveal that this potential downturn will not be too harsh.
Ethereum price movements
As of press time, ETH is trading at $2,299 after a decrease of 4.62% in the last 24 hours. The price went down from a crucial level of $2,411 to the current level after a rejection from the resistance level of $2,445. The ETH price has failed to reclaim the $2,500 level during the month of September so far.
It is a crucial level as it holds the key for ETH to trigger its rebound toward the $3,000 price range. Currently, the broader crypto market is facing bearish pressure, so it is likely that a major ETH recovery will not start in the coming days. However, IntoTheBlock’s analysis suggests that this downturn is not going to be too severe for ETH and its holders.
Tomiwabold Olajide
Gamza Khanzadaev