Ethereum (ETH) is in the news once again, but this time it’s good news for buyers. The latest data show that over 90 percent Ether users are now making money as the price of the cryptocurrency has risen to impressive levels. According to IntoTheBlock, this uptrend is the best time in five months for those holding ETH to make profits.

Inspired by Bitcoin’s return above $96,000, the token jumped to $3,680, its highest level since June. While Bitcoin has cleared the path, Ethereum’s momentum is clearly evident as it has broken barriers with ease. While Ethereum is trading 25% below its all-time high (ATH) of $4,890, Ethereum’s fundamentals and market atmosphere point to a vivid future.

90.8% of $ETH bondholders are currently reporting a profit, the highest since June.

Interestingly, the 9.2% of holders who continue to suffer losses hold only 2.8% of the total supply. This suggests that potential selling pressure from this group may have a circumscribed impact because $ETH continues to show an upward trend. pic.twitter.com/qG4Xgi0Cq3

— IntoTheBlock (@intotheblock) November 28, 2024

Whale confidence and long-term holding

More positive news comes from a closer examination of Ethereum’s investment patterns. Only 9.2% of ETH holders are currently losing money and they only hold 2.8% of the total number of tokens. This means that selling pressure from these investors is unlikely to have a major impact on the market.

Moreover, Ethereum’s long-term holder base is also mighty. The number of ETH holders holding the wallet for more than a year has increased to approximately 74%, indicating confidence in the token’s long-term value. Considering that only 23% of ETH was purchased last year and only 3% last month, most investors seem to be holding on to their investments for the long term.

Degenerating supply, bullish momentum

Another reason for the bullish outlook for Ethereum is the decreasing supply on centralized exchanges. According to analysts, it has continued to decline since last year, reducing ETH on centralized reserves. The more demand outstrips supply during a bull market, the higher prices go.

Ethereum’s recent growth has also been aided by huge inflows to spot ETFsthat have over $90 million. These institutional investments demonstrate growing confidence in Ethereum’s future.

Ethereum: The path to ATH seems clear

ETH is already outperforming the larger cryptocurrency market, posting a weekly gain of 12%. Its ETH/BTC ratio increased by 18%, which indicates strength against Bitcoin. Analysts believe that if Ethereum manages to retest and overcome the $4,000 resistance, the path to an all-time high will become more compelling.

With an escalate in value of 5.92% compared to the previous day, its price dropped slightly to 3610 dollars, as I write. From indications and market sentiment, Ethereum tends to rewrite its previous high for a further breakout.

Featured image from DALL-E, chart from TradingView