- Despite an 11% price drop for Ether (ETH) in the past week, around 89% of ETH holding addresses are still profitable according to data from IntoTheBlock.
- The biggest potential on-chain sell volume for ETH is at $3,700, where over 991,000 addresses acquired 435 million ETH.
- Major potential price catalysts for ETH include SEC approval of Ethereum ETFs and analysts’ bullish predictions of ETH reaching up to $8,000 by end of 2024.
Ether (ETH) has lost over 11% of its value in the past six days, falling from $4,000 to $3,500. However, a vast majority of ETH holders are still in profit according to new data. This article will analyze the current profitability of ETH holders and the coin’s price outlook.
ETH Holder Profitability Remains High
According to crypto market intelligence platform IntoTheBlock, around 89% of ETH holding addresses are currently in the green. Ether’s price began to slump on March 13 after the Dencun upgrade, which was launched to slash Ethereum-based layer-2 solutions’ transaction fees by 10x or more and improve the network’s scalability.
With most holders still profitable despite the recent decline, IntoTheBlock discovered the biggest potential on-chain sell volume is at $3,700, where over 991,000 addresses acquired 435 million ETH.
Price Outlook for ETH
If ETH rebounds from its current trading range of $3,500, the asset could surge past $4,000 soon to record a new high. However, further declines below $3,500 could lead the price below $3,000. Analysts believe ETH could find support around $3,500 and start a fresh rally.
One major potential price catalyst is the approval of spot Ethereum ETFs by the SEC, with a decision due by May 23. Asset manager VanEck believes Ethereum ETFs could attract huge demand and be even bigger than Bitcoin ETFs. Meanwhile, Standard Chartered predicts ETH could reach $8,000 by end of 2024.
Conclusion
Despite recent weakness, the majority of ETH holders remain in profit. The price outlook depends on whether ETH can hold support around $3,500 or continues declining below that level. Major potential catalysts include SEC approval of Ethereum ETFs, which could propel ETH to fresh highs this year.
