Ethereum is pushing higher, as seen on the daily chart. After last week’s decline and rebound, the second most valuable coin is up almost 25% from August lows. If buyers take control today, leveling off and closing above $2,600, as they are doing now, that could anchor the foundation for another rally toward $3,300 in a buying continuation pattern.

66% of all Ethereum addresses are profitable

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

Data IntoTheBlock notes that 66% of Ethereum addresses are in the green at spot rates. This development means that many holders are making money despite the volatility and ups and downs of the past five months after reaching a price peak in March 2024.

The fact that a immense percentage of holders are making profits is confident and may mean that more ETH holders will be willing to hold on to their holdings and wait to see how prices develop in the coming days.

Typically, when a larger percentage of addresses are in the red and losing money, they may panic and look for a way out, acting in self-preservation mode, thus protecting their profits.

While this is also possible now that prices are rising, those who can cash out now could be missing out on even bigger gains, at least based on past guidance. The last time 66% of all ETH addresses saw a gain was in October 2023, according to IntoTheBlock data.

ETH Holders Are Hoarding Funds. Are Bulls Ready to Take Control?

Around October 2023, looking at historical price action, ETH rebounded higher before rising strongly 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 rebound in the past few days and other market factors could support bullish buyers.

At the end of last week, CryptoQuant data he showed which is about those holding between 10 and 10,000 ETH and those holding between 10,000 and 100,000 ETH who were busy buying. Their activity resulted in these cohorts adding a total of 757,000 ETH, which was a huge boost in sentiment.

The fact that these entities are loading up suggests that they are confident about what lies ahead, which is positive for bulls. Since August 12, Ethereum has been facing headwinds around $2,700, the level of the August 5 highs.

For the uptrend to continue, a acute close above this level is needed, preferably on increasing volume. This expansion could set the stage for a rally that could see ETH fly towards the July high of $3,500 in a buy continuation pattern.

Featured image from Canva, Chart from TradingView