Ethereum is pushing higher, as can be seen in the daily chart. After last week’s dip and recovery, the second most valuable coin is up almost 25% from the August lows. If buyers take the lead today, and break above $2,600 and close, as is currently the case, this could set the stage for a fresh rise towards $3,300 in a continuation of the buying trend.

66% of all Ethereum addresses are profitable

The possibility of this price action manifesting itself is highly likely. According to IntoTheBlock data, Ethereum is in an intriguing phase, impressively shaking off the weakness of the first half of the week.

IntoTheBlock data indicates that 66% of Ethereum addresses are green at spot prices. This development means that many holders are making profits despite the volatility and ups and downs of the past five months after prices peaked in March 2024.

The fact that a large percentage of holders are making profits is positive and could mean that more ETH holders are willing to wait and see how the price development unfolds in the coming days.

When a larger percentage of addresses are in the red and incurring losses, they usually try to exit in panic. They do this for self-preservation and to protect their profits.

While this is possible now as prices rise, entities that cash out now could miss out on even greater gains, if history is any guide. According to data from IntoTheBlock, the last time 66% of all ETH addresses saw profits was in October 2023.

ETH Holders Rally, Are the Bulls Ready to Take Over?

Around October 2023, looking at historical price action, ETH bounced higher before surging sharply in the coming months until March 2024, reaching $4,100. While this impressive past performance does not necessarily mean it will be repeated in the coming days, the recovery of the past few days and other market factors could support optimistic buyers.

Late last week, the CryptoQuant data showed Those addresses holding between 10 and 10,000 ETH and those holding between 10,000 and 100,000 ETH were busy buying. Their activity saw these cohorts cumulatively add 757,000 ETH, a huge sentiment boost.

That these entities are loading up suggests they are optimistic about what lies ahead, a net positive for the bulls. As of August 12, Ethereum is facing headwinds around $2,700, or the August 5 highs.

For the uptrend to continue, there needs to be a sharp close above this level, ideally with rising volume. This expansion could form the basis of a leg-up that could send ETH soaring to a July 2024 high of $3,500 in a buy trend continuation formation.

Main image from Canva, chart from TradingView