Ethereum Price Analysis: On-Chain Data Shows 95% of Circulating Coins are in Profits
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As Ethereum (ETH) reclaims the $3,800 area, on-chain data shows that most ETH/USD holders are in profits. Analytics provider IntoTheBlock revealed that 95% of coins in circulation are in profits, indicating that bulls currently control the market.
IntoTheBlock also noted that only 4.6% of Ethereum holders are “out of the money,” meaning that they bought ETH at a higher price than its current price. These holders likely purchased ETH during the previous bull rally to the $4,400 peak.
While the previous price rally likely came about through speculative interest, analysts have asserted that the current bull rally comes from the increased popularity of ETH among institutional investors and that this could trigger a significant change in the crypto asset’s nature. Thanks to the recent EIP-1559 upgrade, which implemented a fee-burning mechanism to the ETH network, more Ether gets burned than distributed, making it a deflationary asset.
A metric system developed by IntoTheBlock highlights the number and the average price of coins held by various addresses. By tracking the average entry-level on the market, traders and investors can project the potential support and resistance zones that could manifest once volatility increases.
Key Ethereum Levels to Watch — October 15
ETH/USD has regained a solid bullish momentum as the largest altcoin plants foot around the $3,800 resistance. Ether recorded a five-week high at the $3,860 point earlier today before recording a mild correction to the $3,740 intraday low.
We expect a steady ascent to the upper-$3,900 area over the coming days as the $4K psychological resistance comes back into view. In the event of slight pullbacks, the $3,700 support should repel any bearish price action.
Meanwhile, our resistance levels are $3,800, $3,900, and $4,000, and our support levels are $3,700, $3,600, and $3,500.
Total Market Capitalization: $2.42 trillion
Ethereum Market Capitalization: $446.1 billion
Ethereum Dominance: 18.4%
Market Rank: #2
