Nearly 80 percent of Etherium’s total supply is currently profitable, according to data provided by Glassnode.
It is worth noting that the coin failed to exceed this level, as it was traded at $ 700 more than two years ago.
A third time for happiness?
Ethereum has already tried to break the 80 percent threshold three times this year.
As the second-largest cryptocurrency approached that in February, its owners’ hopes were dashed by the collapse of the market the following month.
The price of ETH fell by more than 55% in one day over a period of 24 hours during “Bloody Thursday” on March 13. As a result, less than 20% of asset holders were profitable (the lowest reporting so far).
When the profitable supply of the coin falls below 50%, this usually indicates that the market is bottoming out. This has happened many times before, the most striking example being the pandemic collapse.
Conversely, anything over 95% is a sure sign of a market peak. It is virtually impossible to remain unprofitable when an asset approaches new highs.
Bitcoin is in the same situation
As reported, 79% of Bitcoin’s supply was also profitable when Bitcoin was trading at $ 9,500.
Given that the distinctive bull market typically starts at around 90%, top cryptocurrencies (as well as its main competitor) have significantly more room to grow before reaching new highs.
Bitcoin and Ethereum are currently down 50% and 83% from their respective highs of nearly $ 20,000 and $ 1,440, respectively.