Ethereum’s (ETH) dramatic rally to the $3,700 price zone has put a substantial portion of the cryptocurrency’s holders in profit, boosting their investment returns significantly.
According to a tweet by IntoTheBlock, 90% of market participants holding ETH are currently in profit, while the remaining 10% are at the money. No ETH holder is at a loss, at the time of writing.
90% of ETH Holders in Profit
Monday was an eventful trading day for ETH as the asset rallied 10% in 25 minutes, surging past $3,150 to $3,450. At press time, the crypto asset had risen to $3,790, indicating a 22% increase in the past 24 hours. This significant uptick has put the majority of ETH holders in profit.
Ethereum on-chain indicators witnessed similar dynamics roughly two months ago, shortly after the Dencun upgrade. However, the crypto asset saw a significant plunge at the time. ETH fell more than 11% within a week and settled at $3,500. Regardless, around 89% of the asset’s holders were in profit.
This time, ether is rallying on news of the potential launch of spot Ethereum exchange-traded funds (ETF) in the United States, seeing its highest 24-hour move in a year.
Ether ETFs on the Horizon
Bloomberg ETF analysts Eric Balchunas and James Seyffart increased their odds of Ether ETF approval this month from 25% to 75%, citing input from multiple sources and talks that the U.S. Securities and Exchange Commission (SEC) could be reversing its stance on greenlighting the products.
If Balchunas’s prediction is correct, there could be an influx of filings from potential Ether ETF issuers in the coming days.
Besides the increased odds from the ETF analysts, certain developments in the U.S. government signal a positive trajectory for ether in the short term. The U.S. House and Senate recently passed a resolution to scrap an anti-crypto banking rule previously established by the SEC.
The resolution receiving bipartisan support from both chambers came as a shock because it is widely believed that President Joe Biden’s administration has adopted an anti-crypto stance.
Meanwhile, analysts believe ETH could hit $4,000 in a few days if the ETFs are eventually approved. Such a move could bring the asset closer to breaking its all-time high of $4,891.
