Recent on-chain data reveals that 97% of Ethereum (ETH) holders are currently in profit, a near-universal gain driven primarily by short-term traders capitalizing on the altcoin's rally. Sentora reports this milestone approaches historical thresholds where mass sell-offs typically occur, as seen in 2021.
However, Glassnode's MVRV indicator—hovering at 2.0 versus historical peaks of 3.0-3.2—suggests the market isn't overheated. Realized profits hit a 7-day SMA high of $771 million daily in July (easing to $553 million in August), predominantly from addresses holding ETH under six months. Analyst Ali Martinez notes this profit-taking hasn't triggered exhaustion, indicating room for growth if demand persists.
Bullish perspectives include Lark Davis identifying $3,800-$4,000 as a critical support zone for potential buying opportunities. Conversely, Bitcoin maximalist Samson Mow warns of a 'pump-and-dump' cycle where ETH insiders may rotate BTC into ETH to inflate prices before dumping holdings.