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Ethereum’s move last week was full of mixed signals as Spot Ethereum ETFs started seeing good inflows. Particularly ETH went to a rally since mid-September, reflecting a 25% gain from the September 6 low of $2,171 when it crossed $2,715 on September 27.
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This rally and the long-awaited inflows into Spot Ethereum ETFs brought a much needed breather in the Ethereum ecosystem. According to on-chain data, last week’s price action pushed many Ethereum addresses into the profitability zone. Last week’s rally in particular saw Ethereum’s profitability rise from 59% of addresses to 69%.
Ethereum addresses are seeing much-needed profitability
After weeks of market consolidation and outflows from Spot Ethereum ETFs, Ethereum’s price began an upward trajectory in mid-September, which has reignited investor interest. According to data shared by on-chain analytics platform IntoTheBlock (ITB), the rally has resulted in more than two-thirds of Ethereum holders making profits.
The key to understanding this development lies in ITB’s ‘In/Out of the Money’ metricwhich plays a crucial role in assessing the profitability of cryptocurrency holders. This metric compares the current market price of Ethereum to the purchase prices recorded for addresses that hold the asset.
By doing this, it calculates which holders are profiting, losing, or at the break-even point (also called ‘at the money’). By this metric, Ethereum has reached its highest profitability level in almost two months, a key indicator of growing bullish sentiment.
The chart below shows that the number of Ethereum addresses with gains reached 85.03 million last week, representing 69.38% of the total number of Ethereum addresses. At the time, Ethereum was trading at $2,693. Furthermore, the data highlights that at the time, 2.61 million ETH addresses were at the money (neither loss nor gain), while 34.94 million ETH addresses were in losses.
ETH profitability continues to rise?
Looking ahead, it’s natural to wonder whether profitability will continue to rise in October. Fortunately, the crypto industry is now enjoying bullish sentiment, especially in light of the recent Fed rate cuts and weakening currencies in some parts of the world.
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IntoTheBlock reports this social media handle X, more than 80% of ETH volume is now profitable, indicating strong buying support at critical levels. Of Bullish projections are now falling into placewe could see many more addresses and ETH easily become profitable next week.
As Ethereum moves towards higher price levels, attention will also turn to key psychological barriers, such as the $3,000 mark. The first step for ETH bulls is to create one clean break above $2,700 next week. This would set the stage for a successful run to $3,000, bringing even more addresses back into profit.
Featured image of Stormgain, chart from TradingView
