ethereum is on the rise, as shown on the daily chart. After last week’s drop and recovery, the second most valuable coin is up nearly 25% from the August lows. If buyers take control today, breaking out and closing above $2,600, as is currently the case, it could anchor the base for another rally towards $3,300 in a buying trend continuation formation.
The possibility of this price action materializing is highly likely. According to data from IntoTheBlock, ethereum is in an interesting phase and is impressively recovering from the weakness seen in the first half of the week.
Data from IntoTheBlock x.com/intotheblock/status/1822960390344507515″ target=”_blank” rel=”noopener nofollow”>grades 66% of ethereum addresses are in the green at spot exchange rates. This development means that many holders are benefiting despite the volatility and ups and downs of the past five months after prices peaked in March 2024.
<img decoding="async" class="size-full wp-image-314866" src="https://technicalterrence.com/wp-content/uploads/2024/08/Are-ETH-Bulls-Preparing-for-a-100-Surge.jpg" alt="66% of eth addresses are profitable | Source: @intotheblock via x” width=”1024″ height=”171″ srcset=”https://technicalterrence.com/wp-content/uploads/2024/08/Are-ETH-Bulls-Preparing-for-a-100-Surge.jpg?w=1714 1714w, https://technicalterrence.com/wp-content/uploads/2024/08/Are-ETH-Bulls-Preparing-for-a-100-Surge.jpg?w=640 640w, https://technicalterrence.com/wp-content/uploads/2024/08/Are-ETH-Bulls-Preparing-for-a-100-Surge.jpg?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/08/Are-ETH-Bulls-Preparing-for-a-100-Surge.jpg?w=980 980w, https://technicalterrence.com/wp-content/uploads/2024/08/Are-ETH-Bulls-Preparing-for-a-100-Surge.jpg?w=1536 1536w, https://technicalterrence.com/wp-content/uploads/2024/08/Are-ETH-Bulls-Preparing-for-a-100-Surge.jpg?w=750 750w, https://technicalterrence.com/wp-content/uploads/2024/08/Are-ETH-Bulls-Preparing-for-a-100-Surge.jpg?w=1140 1140w” sizes=”(max-width: 1000px) 100vw, 1000px” data-recalc-dims=”1″/>66% of eth addresses are profitable | Source: @intotheblock via x
The fact that a large percentage of holders are in profit is bullish and may mean that more eth holders are willing to wait and see how price action plays out in the coming days.
Typically, when a larger percentage of addresses are in the red and losing money, they may attempt to panic exit, in a self-preservation mode, to protect their bottom line.
While this is also possible now that prices are rising, entities that are able to withdraw their money now could miss out on even bigger gains, at least if the past is what matters. According to data from IntoTheBlock, the last time 66% of all eth addresses made a profit was in October 2023.
eth Holders Accumulate, Are Bulls Ready to Take Control?
Around October 2023, if we look at the historical price action, eth bounced higher before recovering strongly in the following months until March 2024, reaching $4,100. Although this impressive past performance does not necessarily mean that it will repeat itself in the coming days, the recovery of the past few days and other market factors may boost optimistic buyers.
At the end of last week, CryptoQuant data presented which targets those holding between 10-10,000 eth and those holding between 10,000-100,000 eth were busy buying. Their activity caused these groups to add 757,000 eth cumulatively, a huge boost to sentiment.
The fact that these entities are accumulating suggests that they are optimistic about what lies ahead, which is a positive for the bulls. As of August 12, ethereum is facing headwinds around $2,700, or August 5 highs.
x/tmmdTa2I/” rel=”nofollow noopener” target=”_blank”>x/tmmdTa2I/” alt=”ethereum Price Shows Sideways Trend on Daily Chart | Source: ETHUSDT on Binance, TradingView” width=”1233″ height=”590″/>ethereum Price Shows Sideways Trend on Daily Chart | Source: x/tmmdTa2I/” target=”_blank” rel=”noopener nofollow”>ETHUSDT on Binance, TradingView
For the uptrend to continue, there needs to be a sharp close above this level, ideally with increasing volume. This expansion can form the basis of a rally that can see eth reach a July 2024 high of $3,500 in a buy trend continuation formation.