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ethereum's movement last week was full of mixed signals as ethereum Spot ETFs started witnessing good inflows. In particular, eth has been at a rally since mid-September, reflecting a 25% gain from the September 6 low of $2,171, when it crossed $2,715 on September 27.
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This rally and the long-awaited inflows into ethereum Spot ETF brought a much needed respite in the ethereum ecosystem. According to on-chain data, last week's price action caused many ethereum addresses to enter the profitability zone. Notably, last week's rally boosted ethereum's profitability from 59% of addresses to 69%.
ethereum Addresses See Much-Needed Profitability
After enduring weeks of market consolidation and outflows from ethereum spot ETFs, the price of ethereum began an upward trajectory in mid-September that has reignited investor interest. According to data shared by on-chain analytics platform IntoTheBlock (ITB), the rally has led to more than two-thirds of ethereum holders turning a profit.
The key to understanding this development lies in eth/deep-dive?group=financials&chart=inAndOut” target=”_blank” rel=”nofollow”>ITB “Money In/Out” Metricwhich plays a crucial role in evaluating the profitability of cryptocurrency holders. This metric compares the current market price of ethereum with the purchase prices recorded for addresses that own the asset.
In doing so, it calculates which holders have profits, losses or are at the break-even point (known as “at the money”). By this measure, ethereum has reached its highest profitability levels in almost two months, a significant indicator of growing bullish sentiment.
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The chart below shows that the number of earning ethereum addresses reached 85.03 million last week, representing 69.38% of the total ethereum addresses. At the 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 making a loss nor making a profit), while 34.94 million eth addresses were making a loss.
Will eth profitability continue to increase?
Looking ahead, it is natural to wonder if profitability will continue to rise in October. Fortunately, the cryptocurrency industry is now enjoying bullish sentiment, especially in light of the Fed's recent rate cuts and weakening currencies in some parts of the world.
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x.com/intotheblock/status/1840059367208485322″ target=”_blank” rel=”nofollow”>According to IntoTheBlock handle social media on x, over 80% of eth volume is now profitable, indicating strong buying support at critical levels. With Bullish projections are now falling.we could see many more addresses and eth easily entering profitability next week.
As ethereum moves towards higher price levels, attention will also focus on key psychological barriers such as the $3,000 mark. The first step for eth bulls is to make a clean break above $2,700 next week. This would set the stage for a successful run to $3,000, allowing even more addresses to return to profit.
Featured image of Stormgain, TradingView chart
