Key Points
After reaching the $3,000 price range recently, the number of profitable Ethereum (ETH) traders increased and then decreased. With the price now below the $3,000 range, the question arises whether some holders might be pressured to sell.
Recent data provides insights into the addresses that acquired Ethereum within the $2,500 to $3,000 price range. The data reveals a near equal split between addresses in profit (“in the money”) and those not in profit (“out of the money”).
Understanding the Data
The data indicates that 7.36 million addresses, or 52.19% in this category, are currently in profit. On the flip side, 45.88% or 6.47 million addresses are currently not in profit. The remaining 1.9% or over 272,000 addresses are at breakeven.
Digging deeper into the addresses in loss, 1.38 million addresses bought 1.33 million ETH at an average price of $2,984. This totals to approximately $3.9 billion.
The implication is that there might be increased selling pressure if these addresses reach the breakeven point. This potential is reinforced by the fact that four whales sold 34,134 ETH near the $3,000 price, amounting to around $100.8 million.
An analysis of the Ethereum price trend on its daily timeframe showed that its time in the $3,000 price range was brief. It then fell below this threshold, but not significantly. At the time of writing, it was trading at around $2,920, reflecting a decrease of about 1.4%. Since falling from the $3,000 price range, it has maintained the $2,900 range.
Despite the price drop, the trend remains strong, as indicated by the Relative Strength Index (RSI), which was above 70 at the time of writing. However, if the price continues to fall, the RSI position might change. Even though Ethereum would still be in a bull trend, it would exit the overbought zone.
The seven-day Market Value to Realized Ratio (MVRV) analysis showed a gradual decline in Ethereum’s profitability. According to Santiment data, there has been a sharp drop in the last 48 hours, with the MVRV decreasing from over 6% to 1.15% at the time of writing. This suggests that ETH holders currently hold around 1% profit in this timeframe.
