Ethereum (ETH) has recently soared past the $3,300 mark, buoyed by Bitcoin‘s positive momentum. In a 24-hour period, ETH has recorded a substantial 1.33% increase, and a notable 12% upward shift over the past week, according to CoinMarketCap. This bullish trend has resulted in significant profitability for traders and investors within the Ethereum market.
Ethereum Traders Enjoy Profitable Streak
The surge in Ethereum’s value has ensured most market participants are profiting from their trades. Blockchain analytics firm Santiment reports the on-chain profit to loss transaction ratio has hit a three-month peak, with profitable transactions outnumbering the losing ones at a rate of roughly 2.3 to 1.
Currently, over 93% of Ethereum’s total supply is in profit, a level last observed in August 2021, mere months before Ethereum reached its historical high. Additionally, the 30-day Market Value to Realized Value (MVRV) ratio indicates that, on average, ETH holders have gained over 20% on their investments.
Long-term Holders Gain More Than Short-term Traders
An analysis of the MVRV Long/Short Difference reveals that long-term holders, often referred to as ‘diamond hands’, are achieving higher returns than short-term traders. This could suggest anticipation of surpassing previous all-time highs among this investor category.
Despite the optimistic trend, caution is advised due to the potential for a price correction. The supply of ETH on exchanges has decreased since the outset of 2024, while off-exchange supply has risen, possibly indicating an increase in selling pressure in the short term. Such price corrections could provide a strategic buying opportunity for investors.
As Ethereum enthusiasts remain hopeful for a long-term bull run, the much-anticipated Dencun upgrade is set to take place, aimed at reducing transaction fees on Layer-2 chains. The Ethereum Foundation confirmed the upgrade’s successful activation on test networks and has initiated preparations for its mainnet launch on March 13, amplifying the positive sentiment in the market.