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Ethereum’s move last week was full of mixed signals as spot Ethereum ETFs started seeing good inflows. Specifically, ETH went on a rally Since mid-September, it represents a 25% gain from the September 6 low of $2,171, as it surpassed $2,715 on September 27.
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This Rally and the Much-Anticipated Inflow into the Spot Ethereum ETF brought a much needed relief In the Ethereum ecosystem. Many Ethereum addresses moved into profitability territory in last week’s price action, according to on-chain data. Notably, last week’s rally increased Ethereum’s profitability from 59% of addresses to 69%.
Ethereum Addresses See Much-Needed Profitability
Following several weeks of market consolidation and withdrawals from spot Ethereum ETFs, the Ethereum price began an upward move in mid-September, rekindling investor interest. More than two-thirds of Ethereum holders are in profit due to the rally, according to data shared by on-chain analytics platform IntoTheBlock (ITB).
The key to understanding this development lies in ITB’s “in/out of the money” metricWhich plays an important role in 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.
By doing this, it calculates which holders are in profit, at loss, or at the break-even point (called “in the money”). According to this measure, Ethereum has reached its highest profitability level in nearly two months, which is an important indicator of growing bullish sentiment.
The graph below shows that the number of Ethereum addresses in profit reached 85.03 million last week, which is 69.38% of the total Ethereum addresses. At this time Ethereum was trading at $2,693. Furthermore, the data highlights that at this time, 2.61 million ETH addresses were in the money (neither in loss nor in profit), while 34.94 million ETH addresses were in loss.
Will ETH Profitability Continue to Increase?
Looking ahead, it’s natural to wonder whether profitability will continue to rise in October. Fortunately, the crypto industry is now enjoying bullish sentiment, especially in light of recent Fed rate cuts and weakening currencies in some parts of the world.
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According to IntoTheBlock Social Media Handle On X, over 80% of ETH volume is now profitable, indicating strong buying support at key levels. with Bullish predictions are now proving correctWe could see many more addresses and ETH easily enter profitability next week.
As Ethereum moves towards higher price levels, attention will also turn to key psychological barriers, such as the $3,000 mark. ETH Bulls Have to Make the First Move Clear break above $2,700 Next week. This would set the stage for a successful run up to $3,000, bringing even more addresses back into profit.
Featured image from StormGain, chart from TradingView
