- It turns out that for every lossy transmission in the network, about 2.3 transmissions are profitable.
- On average, all ETH holders realized a profit of more than 20% on their investment.
Ethereum (ETH) has surpassed $3,300 as bullish momentum for the world’s second-largest cryptocurrency continues to rise. As of press time, ETH is up 2.61% in 24 hours and over 12% in a week, according to CoinMarketCap.
Profitability highest since November
As prices boomed, most traders took profits from their trades. Last week, Ethereum’s on-chain profit/loss ratio hit its highest in three months, according to blockchain analytics firm Santiment.
It turns out that for every lossy transmission in the network, about 2.3 transmissions are profitable.
Source: Santiment
At the time of this writing, the return-to-gross supply ratio is over 93%. This level on the upward curve was last seen in August 2021, three months before ETH reached its all-time high (ATH).
Additionally, on average, all ETH holders have realized a gain of over 20% on their investment, as evidenced by the 30-day MVRV ratio. Generally, the higher the ratio, the more likely it is that traders have historically demonstrated a willingness to sell.
Source: Santiment
However, AMBCrypto’s research on the MVRV Long/Long Difference indicator shows that long-term holders are realizing higher returns than short-term holders.
Therefore, it is very likely that these diamond hands will wait for the price to rise above the ATH before being distributed.
Source: Santiment
Beware of retreat
With ETH’s bullish momentum, a potential correction should not be missed.
The total amount of ETH on exchanges has steadily increased since early 2024, while external supply has stagnated. This is generally interpreted as an increase in short-term selling pressure. This correction could be a good time to buy the dip.
Source: Santiment
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All preparations for Tenkun
That said, following a strong bullish catalyst, ETH supporters were confident that the bull market would extend.
One of them was the Dencun upgrade, designed to reduce transaction fees on layer 2 (L2) chains. According to a recent blog post from the Ethereum Foundation, the upgrade has been activated on all testnets and a mainnet launch is scheduled for March 13th.