Ether on top: Over 90% of holders in profit, but $4,000 threshold in sight

Ether on top: Over 90% of holders in profit, but $4,000 threshold in sight

Everyone who owns ether (ETH) has reason to celebrate - over 90% of them are currently in profit. The price of the cryptocurrency has increased by 5.7% over the past seven days, sparking optimism among many investors. Still, there is caution among traders, especially when it comes to crossing the psychological threshold of $4,000.

Short bets on the rise of ETH

According to analytical data from CoinGlass, however, bold investors are looking to profit from the decline in the price of ether. Currently, short bets are piling up that could be liquidated if ETH reaches $4,000. In total, up to $1.43 billion of short positions may be liquidated, suggesting that traders are unsure of the next upswing.

An interesting takeaway from IntoTheBlock's post is that 90.8% of ETH holders are now in profit, the highest percentage since June 2023. Among holders who are still in the red, only 2.8% of the total supply is held. This implies that potential selling pressure from these investors could have a limited impact on the market.

Stable levels and expectations of upside

For example, the last crossing of the $4,000 mark took place on March 12, 2023. Since then, the ether price has been in a narrow band between $2,223 and $4,066. Expectations regarding the impact of the launch of spot ETFs on Ether, which took place on July 23, have not yet met the hopes of traders, who anticipated that it could take the price to higher levels.

Nevertheless, analyses show that the Ether market still has the potential to grow. A recent report from CryptoQuant highlighted the rise in financial rates for ETH, although they are now still below levels seen when Ethereum reached its all-time high of $4,900. The funding rate for ETH on the Binance exchange was 0.0162% at the time of writing.

Optimism among investors

Despite the current trend, there are optimistic voices among traders. One pseudonymous trader, Ash Crypto, announced on social network X that Ether is "very close" to reaching $4,000. Another trader, Borovik, went even further and expressed his belief that if Ethereum reaches $15,000 this cycle, he will get his first tattoo with the ETH logo.

Cryptoanalyst Lark Davis also mentions an optimistic vision for Ether, targeting $15,000. This excitement among investors suggests that despite the current uncertainties, there may be a positive outlook for Ether in the near future.

In conclusion, while the majority of ether holders are in profit, concerns about breaking the $4,000 mark continue to linger. The caution in the market suggests curiosity about what directions the ETH price may take in the coming weeks.

*This is not investment advice.

Coingarage Team