89% of Holders Profit Despite Ether Price Decline

The value of ethereum (ETH) has reportedly fallen more than 11 percent over the past six days, from $4,000 to $3,500, but the vast majority of holders are still profitable. According to a tweet from crypto market intelligence platform IntoTheBlock, about 89 percent of ETH-holding addresses are currently in profit.The price of Ether began to slide on March 13 following the Dencun upgrade. The upgrade is designed to reduce transaction fees for Ether-based Layer 2 solutions by a factor of 10 or more and improve the scalability of the network. Despite the price drop, 89% of ETH holders are still profitable.IntoTheBlock found that the largest potential on-chain selling volume was at $3,700, with more than 991,000 addresses purchasing 4.35 million ETH.If ETH bounces back from its current trading range of $3,500, the asset could break above $4,000 to hit new highs in the coming weeks, but a further drop could push the asset below $3,000. Analysts believe that ETH could find support in the $3,500 area and begin a new round of gains. However, continued price declines could push its support levels to $3,181 and $2,966. In the short term, an important factor in whether ETH rises is the approval of spot ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). The agency has delayed its decision on these products until May 23rd. Interestingly, asset management firm VanEck believes that if the SEC ultimately approves the launch of spot ethereum ETFs, they could be bigger than bitcoin ETFs. The firm says that ethereum ETFs could attract more demand because their market size is as large as that of bitcoin ETFs. Meanwhile, Standard Chartered recently predicted that ETH could be worth $8,000 by the end of 2024 and $14,000 by 2025.