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- Ethereum investors have reportedly entered profitability of more than 1 percent after the asset surged by 13 percent since the start of the rally.
- However, the number of new users joining the network has dropped significantly as the number of new wallet addresses remains stagnant.
Ethereum (ETH) investors made some substantial gains in the recent bull run that saw the asset surging by 13 percent since the start of the uptrend. Ethereum still maintains a bullish market sentiment with a weekly surge of 8 percent and a 24-hour surge of 1.58 percent. Currently, the asset is trading at $1,819.46. While it has declined marginally from the recent gains, Ethereum is still showing signs of a bullish continuation.
Earlier in the day, the asset was trading at $1,780 and had a less than 1 percent gain.
The consecutive declines pushed its Relative Strength Index (RSI) below 70. One interesting news about the recent rally is that holders have entered profitability. According to the Market Value to Realized Value (MVRV) chart, holders have more than 1 percent profit as of the time of writing. On record, the holders had been in a losing position for the past three months until recently. The 90-day MVRV even shows a greater profitability of 7 percent among holders.
Market data shows that Ethereum is up by 0.48 percent in the last 1 hour. This is an indication of an extension of the upward trend and a possible expansion of the profit margin.
Regardless of these impressive signals, there have been just a few responses from new users according to data from Glassnode. As of press time, the number of new addresses was around 65,525. Meanwhile, institutional demand has been on an upward trajectory. This was confirmed by CryptoQuant analysis. According to the report, Ethereum Funds have been recovering since January 2023.
More Analysis on Ethereum
The analysis also hints that the upward rise would narrow the “market value of Ethereum contracts and the market price.” Similarly, crypto in the derivative market has seen increasing confidence. A 30-day assessment reveals that the Open Interest profile of the asset has been positive. A look at the buy and sell profile discloses a sharp decline in the sell positions. Around mid-October, the number of sells hit its highest at 105,000 with the number of buys reaching a little over 57,000.
With data showing that ETH was recently overbought, there could be a possibility of a pullback. Interestingly, bulls have shown no willingness to hand the market control over to the bears. The reason has been linked to the decision of holders to possess the asset for the long term.
Recently, the Head of Standard Chartered Bank digital assets research, Geoff Kendrick, predicted that Ethereum could hit $80k in the long term.
We see the $8,000 level as a stepping stone to our long-term ‘structural’ valuation estimate of $26,000-$35,000…The valuation assumes future use cases and revenue streams that may not have emerged yet, although the real-world use cases of gaming and tokenization should support their development.
ETH currently has a 24-hour trading volume of $6,731,148,104 and a market cap of $217,733,520,034. According to a price prediction platform, the asset can go as high as $3,260.13 before the year ends.
