Over 90% of ETH holders are in profit, but doubts linger over $4K breakout
|More than 90% of Ether holders are now in profit as the cryptocurrency rose 5.7% over the last seven days, but traders are seemingly uncertain about whether ETH can break back above the critical $4,000 level, with traders mounting up on short bets.
Short bets against $4,000 keep piling up
CoinGlass data shows much as $1.43 billion of short positions could be liquidated if Ether reaches $4,000.
It comes as recent data from IntoTheBlock shows that “90.8% of ETH holders are now in profit, the highest since June.”
“Interestingly, the 9.2% of holders still at a loss hold just 2.8% of the total supply,” the data revealed, suggesting that “potential sell pressure from this group may have a limited impact.”
The last time Ether crossed the $4,000 price level was March 12, when Bitcoin BTC $96,170 reached its previous high of $73,679, according to CoinMarketCap data.
Ether is trading at $3,582 at the time of publication. Source: CoinMarketCap
Since then, Ether has been stuck in a narrow range, trading between $2,223 and $4,066, even after the spot Ether ETF launched on July 23. Ether traders were anticipating the launch would lead to similar price action that Bitcoin saw after the spot Bitcoin ETFs launched in January.
Funding rates suggest Ether has more upside ahead
Several traders are optimistic that Ether is still on track to return to its yearly high levels.
In a Nov. 28 market report, CryptoQuant contributor ShayanBTC pointed out that Ether funding rates have seen a “significant uptick” in recent weeks.
However, funding rates are still below the levels seen when Ethereum hit its all-time high of $4,900, they said, indicating that Ether hasn’t yet “entered an overheated state.”
At the time of publication, Ether’s funding rate on the crypto exchange Binance is 0.0162%.
Pseudonymous crypto trader Ash Crypto said that Ether is “very close” to reaching $4,000 to their 1.3 million X followers on Nov. 28.
Pseudonymous crypto trader Borovik is even more optimistic, saying in a Nov. 23 X post that “If Ethereum hits $15,000 this cycle, I’ll get my first ever tattoo. The ETH logo.”
Crypto analyst Lark Davis has been emphasizing the $15,000 price target for Ether to his 1.2 million X followers since July.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.