Ethereum’s movement last week was full of mixed signals as Spot Ethereum ETFs began to witness good inflows. Notably, ETH was at a rally since mid-September, reflecting a 25% gain from the September 6th low of $2,171, while crossing $2,715 on September 27th.
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This rally and the well-awaited inflows into Spot Ethereum ETFs brought a much needed breather in the Ethereum ecosystem. According to network data, last week’s price action caused many Ethereum addresses to enter the profitability zone. Particularly, last week’s rally raised Ethereum’s profitability from 59% of addresses to 69%.
Ethereum addresses present the necessary profitability
After weeks of market consolidation and outflows from Spot Ethereum ETFs, the price of Ethereum began an upward trajectory in mid-September, which reignited investor interest. According to data shared by on-chain analytics platform IntoTheBlock (ITB), the rally caused more than two-thirds of Ethereum holders to make a profit.
The key to understanding this development lies in ITB “In/Out of the Money” metricwhich plays a crucial role in evaluating the profitability of cryptocurrency holders. This metric compares the current market price of Ethereum to the purchase prices recorded for addresses that hold the asset.
In doing so, it calculates which holders are at a profit, a loss, or at break-even (known as “in the money”). By this measure, Ethereum has reached its highest profitability levels in nearly two months, a significant indicator of growing bullish sentiment.
The chart below shows that the number of profit-making Ethereum addresses reached 85.03 million last week, representing 69.38% of total Ethereum addresses. At this time, Ethereum was trading at $2,693. Furthermore, the data highlights that at this time, 2.61 million ETH addresses were in the money (neither at a loss nor in a profit), while 34.94 million ETH addresses were at a loss.
Will ETH Profitability Continue to Increase?
Looking to the future, it is natural to wonder whether profitability will continue to increase in October. Fortunately, the crypto industry is now basking in optimistic sentiment, especially in light of the Fed’s recent rate cuts and weakening currencies in some parts of the world.
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According to IntoTheBlock’s social media control on X, over 80% of ETH volume is now profitable, indicating strong buying support at critical levels. With Bullish projections now falling into effectwe could see many more addresses and ETH easily reaching profitability next week.
As Ethereum moves towards higher price levels, focus will also turn to key psychological barriers such as the $3,000 mark. The first step for ETH bulls is to make a clean break above $2,700 next week. This would set the stage for a successful run to $3,000, bringing even more addresses back into profit.
Stormgain Featured Image, TradingView Chart
