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Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U. Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Ethereum (ETH), the second-largest cryptocurrency by market cap, rose above $3,000 in the last 24 hours for the first time since April 2022 before falling back amid a crypto market sell-off.
At the time of writing, ETH was down 1.43% in the last 24 hours, at $2,891. As Ethereum hovers below $3,000, on-chain analytics firm IntoTheBloc presents what the on-chain picture looks like.
In total, nearly 16 million ETH addresses (or around 14.7%) are still holding at a loss. In addition, if Ethereum returns to $3,000, about 879,000 addresses will become profitable. These addresses have been out of profit for two years and may look to sell and break even at this psychological threshold.
On the bigger picture, this number of addresses is a relatively small obstacle for ETH. With more than 83% of addresses currently profitable, Ethereum’s most likely scenario is to reclaim $3,000.
Bitcoin and Ethereum are leading the asset performance pack, with year-to-date gains of 17.6% and 18.2%, respectively.
Following the introduction of the Bitcoin ETF, ETH has begun to outperform BTC, an aberration from its relative underperformance in 2023.
However, the aggregate altcoin market cap has not performed as well, with YTD growth less than half that of the two major cryptocurrencies.
Ethereum is outperforming Bitcoin due to expectations that the next wave of new U. S. crypto exchange-traded funds may target the second-largest digital asset, heralding a surge in investor demand.
Per historical data, Ethereum inflows tend to lag behind Bitcoin, suggesting investors look for confidence and confirmation that digital asset markets are expanding. In the 2021 cycle, the peak influx of new capital into BTC came 20 days before the peak influx into ETH.