Most ETH holders are profitable
Researchers at IntoTheBlock noted that the rapid growth of the Ethereum (ETH) cryptocurrency rate has become the reason that 90% of holders of the digital coin are in a profitable position. Let us remind you that on the night of May 20-21, 2024, virtual currency quotes rose to $3,600. At the time of writing this news, the price has been adjusted. Ethereum was trading at $3,535.
Thus, the rate of the digital coin ETH increased by 15% in less than 24 hours. The market capitalization of the virtual currency soared to $424.68 billion, adding about $55 billion in 24 hours. Daily trading volumes on the spot market reached $24.17 billion. Ether is now trading 28% below its historical price maximum.
The explosive growth of the ether price to $3,600 indicates that a significant number of holders of this cryptocurrency are in a profitable position. Most holders purchased Ether at lower prices and are seeing the value of their investment rise.
This state of affairs suggests that market participants believe in the future appreciation of ETH and are eagerly awaiting news about the potential launch of spot ETFs in the United States.
The explosive growth of ether prices and the profitability of the majority of holders may be associated with the beginning of a bull market. This is considered a prerequisite for further increase in the exchange rate. However, there is a possibility that the âbuy rumors, sell newsâ scheme will work. This means that massive sales of ETH may soon follow to take profits.
The expression âbuy the rumors, sell the newsâ refers to a trading strategy in the financial markets. The idea is that unofficial information can be a harbinger of future significant events or announcements that could affect the price of an asset. Investors purchase cryptocurrencies at a lower price, expecting to sell their coins when the news is confirmed.#ETHETFS $ETH
