Ethereum (ETH) Price Maintains Highest Profit/Loss Ratio Among All Cryptos, What's Next? – CoinGape
News
Markets
Cryptoguru
Collection
Contact
Follow us on:
TRENDING TODAY
Ethereum (ETH), the second-largest cryptocurrency globally, has surged significantly with 3.57% gains in the last 24 hours and eyeing a rally past $3,500. As of press time, the Ethereum price is trading at $3,360 with a market cap of $403 billion.
As per on-chain data provider Santiment, Ethereum is seeing the highest profit/loss ratio in nearly three months even surpassing the likes of Bitcoin. In the current week, the Ethereum network has observed its most notable proportion of profitable on-chain transfers since November, boasting a ratio of 2.3 to 1 for coins moving at a profit compared to those at a loss.
Similarly, Bitcoin’s ratio stands relatively high at 1.8 to 1 during this period. This data underscores a trend of increased profitability for transactions on both the Ethereum and Bitcoin networks, suggesting positive sentiment among cryptocurrency holders.
The Ethereum (ETH) price rally comes as the blockchain gears up for the Ethereum Dencun upgrade next month.
The below chart illustrates a significant decline in the ETH funding rate on February 26, plummeting to as low as 0.02%. Yet, with the market sentiment turning bullish on Tuesday, LONG position holders swiftly propelled the funding rate to 0.06%, marking a staggering 300% increase from the previous day. This resurgence in Ethereum futures traders’ confidence reflects a renewed conviction to push spot prices towards the next milestone, potentially surpassing the $3,500 mark.
IntoTheBlock’s global in/out of money data, which categorizes existing ETH holders by their entry prices, supports this viewpoint. Currently, with Ethereum trading at $3,250, approximately 80% of current holders find themselves in a profitable position. Given this scenario, many holders may choose to hold onto their ETH rather than sell, thereby fueling the ongoing rally.
Notably, the data highlights that the 1.03 million addresses that acquired 218,650 ETH at an average price of $3,300 could serve as a significant resistance level to overcome. Nevertheless, if bullish futures traders’ expectations materialize and this crucial resistance level is breached, it could pave the way for a rally above $3,500.
However, should prices dip below $3,000, the current prevalence of extreme leverage positions exposes ETH traders to significant losses, particularly if a wave of margin calls initiates a LONG squeeze. Popular crypto analyst Michael van de Poppe also said that one cannot rule out a 10-20% drop after the current run-up.
Giant move on #Ethereum.
It’s been rallying from $2,150 to $3,220.
To be accurate, having a 10-20% correction after this run would be very normal to expect.
I’m still determining where, but if it happens, it’s a dip opportunity before Ethereum visits $4,000. pic.twitter.com/TTGyyQF1bl
— Michaël van de Poppe (@CryptoMichNL) February 27, 2024
Crypto Prices Today: Bitcoin At 57K, ETH & XRP Gain As PEPE Surges 30%
Breaking: US SEC Request Judge Torres to Extend Remedies Briefing Deadlines in Ripple Case
DAILY NEWSLETTER
Your daily dose of Crypto news, Prices & other updates..
Cryptocurrency Prices
Popular
Popular Categories
Exclusive
Contact
Exclusive
Contact
Close