Ethereum News Today: 97 Percent of Ethereum Addresses in Profit Amid Bullish Momentum and Historical Correction Risks

Over 97 percent of Ethereum addresses are currently in profit, a rare and significant figure that has ignited debate among market analysts. This level of profitability, according to Sentora—formerly IntoTheBlock—has not been seen in several years and marks a potentially pivotal moment in the cryptocurrency market [1]. The statistic surpasses the 90 percent threshold, historically associated with widespread profit-taking, most notably during the 2021 bull run, when similar levels led to a sharp correction [2].

The current data, which compares the average purchase price of Ethereum addresses with the current crypto price, indicates a robust and broadly positive market environment [1]. However, the historical precedent raises concerns that this could also signal a market nearing a turning point. Analysts remain divided, with some viewing it as a sign of sustained bullish momentum and others interpreting it as a cautionary signal of an impending reversal.

Lark Davis, a crypto analyst and trader, sees potential in the $3,800 to $4,000 price range as a key area of support and accumulation. He suggests that a retest of this zone could attract new buyers and provide an opportunity for those who missed earlier entry points [3]. His bullish stance is based on the idea that Ethereum has the potential to establish a solid foundation for further growth, reinforcing confidence among investors.

Conversely, Samson Mow, CEO of JAN3, offers a more cautious outlook. He points to a trend where large ETH holders, often with significant BTC holdings from early ICOs, are rotating their Bitcoin capital into Ethereum. This activity, driven by new narratives such as corporate treasuries holding Ethereum, may temporarily inflate ETH’s price. However, Mow warns that this dynamic could reverse once key resistance levels are reached, leading to a wave of profit-taking and downward pressure [4]. His perspective highlights the potential for orchestrated market behavior and a temporary shift in capital flows between BTC and ETH.

The high profitability among Ethereum addresses mirrors conditions seen during the 2021 bull run, when extended periods of positive returns eventually led to market corrections. While this does not guarantee a downturn, it underscores the need for investors to remain vigilant and employ risk management strategies [5]. Some market observers, including Sentora and others, have emphasized the increased vulnerability of the market to pullbacks, given the high proportion of addresses in profit, which may lead to increased selling pressure [6].

The broader market is currently at a strategic crossroads, with the outcome likely to depend on Ethereum’s ability to maintain key support levels and the nature of capital flows between Ethereum and Bitcoin. Investors are now faced with a classic dilemma: to ride the bullish momentum or to prepare for a potential sharp correction. The market’s next moves will be closely watched by both retail and institutional participants, as the balance between optimism and caution continues to shape the crypto landscape.

Source:

[1] Ethereum Addresses in Profit: Analysts Suggest Caution Amid Bullish Signals and Historical Sell-Off Patterns (https://en.coinotag.com/ethereum-addresses-in-profit-analysts-suggest-caution-amid-bullish-signals-and-historical-sell-off-patterns/)

[2] Ethereum Addresses See 97% in Profit: A Bullish Signal for ... (https://www.ainvest.com/news/ethereum-news-today-97-ethereum-addresses-profit-bullish-trends-sell-risks-2508/)

[3] Ethereum price nears $4400: 97% of holders in profit (http://www.msn.com/en-in/money/topstories/ethereum-price-nears-4-400-97-of-holders-in-profit-is-the-world-s-second-largest-cryptocurrency-heading-to-7-000/ar-AA1KjCvm?apiversion=v2&batchservertelemetry=1&domshim=1&noservercache=1&noservertelemetry=1&renderwebcomponents=1&wcseo=1)

[4] Ether's Rally Pulls Bitcoin Along: Crypto Daybook Americas (https://www.coindesk.com/daybook-us/2025/08/11/ether-s-rally-pulls-bitcoin-along-crypto-daybook-americas)

[5] Arthur Hayes buys into market rally with latest ETH, DeFi ... (https://www.mitrade.com/au/insights/news/live-news/article-3-1029345-20250811)

[6] Sequans Boosts Bitcoin Holdings with New Acquisition (https://m.economictimes.com/crypto-news-today-live-11-aug-2025/liveblog/123223005.cms)