Ethereum has experienced a notable surge in value, surpassing the $3,300 mark, buoyed by Bitcoin‘s positive momentum. Current data reveals that Ethereum’s value has escalated by more than 1.33% in the past day and upwards of 12% over the week, signaling a robust performance that has delighted investors.
Ethereum’s On-Chain Data Reflects Profitability
The recent appreciation in Ethereum’s price has resulted in profitable outcomes for a majority of traders. Blockchain analytics firm Santiment reports that the on-chain profit-to-loss transaction ratio for Ethereum is at a three-month peak, with profits outnumbering losses by a ratio of 2.3 to 1.
As of the latest figures, over 93% of Ethereum’s total supply is in profit, a statistic comparable to the period before Ethereum reached its all-time high back in August 2021. Additionally, the 30-day Mean Value to Realized Value (MVRV) ratio suggests that Ethereum holders have, on average, gained over 20% on their investments.
Analyses also reveal that long-term holders, often referred to as ‘diamond hands,’ are enjoying higher returns than short-term investors, hinting at their expectation for the value to climb past previous peaks.
However, despite the uptrend, investors are cautioned to remain vigilant for a possible price correction. With the circulating supply of Ethereum on exchanges dwindling since the start of the year and the off-exchange supply risig, there could be an impression of mounting short-term selling pressure.
Ethereum Community Awaits Dencun Upgrade
The Ethereum community remains optimistic about a sustained bull market, further fueled by upcoming developments. The Dencun upgrade is one such development, designed to lower transaction fees on Layer-2 (L2) chains. The Ethereum Foundation has announced the successful activation of this upgrade on test networks, with the mainnet launch expected on March 13th, amplifying the anticipation among supporters.