Ethereum (ETH), the second-largest cryptocurrency by market capitalization, surged beyond $3,000 in the previous 24 hours for the first time since April 2022, only to fall back amid a crypto market selloff.
At the time of writing, ETH was down 1.43% in the last 24 hours to $2,891. As Ethereum falls below $3,000, on-chain analytics business IntoTheBloc shows what the on-chain picture looks like.
Overall, roughly 16 million ETH addresses (or around 14.7%) are still holding at a loss. In addition, if Ethereum recovers to $3,000, about 879,000 addresses will become lucrative. These locations have been unprofitable for two years and may want to sell and break even at this psychological barrier.
https://x.com/intotheblock/status/1759962444904923495?s=20
In the grand scheme of things, this number of addresses is a minor stumbling block for ETH. With over 83% of addresses presently profitable, Ethereum’s most likely outcome is reclaiming $3,000.
Ethereum outperforms Bitcoin
Bitcoin and Ethereum are now leading the asset performance pack, with year-to-date gains of 17.6% and 18.2%, respectively.
Following the launch of the Bitcoin ETF, ETH has begun to outperform BTC, a marked change from its relative underperformance in 2023.
However, the aggregate altcoin market cap has not done as well, with year-to-date growth less than half that of the two largest cryptocurrencies.
Ethereum is beating Bitcoin on anticipation that the next wave of new U.S. crypto exchange-traded funds would target the second-largest digital asset, resulting in an increase in investor demand.
According to historical data, Ethereum inflows lag behind Bitcoin, indicating that investors need trust and proof that digital asset markets are increasing. In the 2021 cycle, the highest influx of fresh money into Bitcoin occurred 20 days before the top influx into Ethereum.
