Ether nears $4K as 90% of holders remain profitable

More than 90% of Ether (CRYPTO:ETH) holders are in profit as the cryptocurrency’s price climbed 5.7% over the past week.

Despite this, traders remain cautious about Ether’s ability to cross the $4,000 mark, with significant short positions accumulating.

Data from CoinGlass reveals that $1.43 billion in short positions could face liquidation if Ether hits $4,000.

Meanwhile, IntoTheBlock reports that “90.8% of ETH holders are now in profit, the highest since June,” while the remaining 9.2% control only 2.8% of the total supply, suggesting minimal sell pressure from this group.

Ether, currently trading at $3,582, has been in a range of $2,223 to $4,066 since March 2024.

The market had anticipated significant movement following the launch of spot Ether ETFs in July, but the price action has been more subdued than expected.

Funding rates indicate potential upside, with CryptoQuant contributor ShayanBTC noting a “significant uptick” in recent weeks.

Although these rates remain below levels seen during Ether’s all-time high of $4,900, they suggest the market has not yet reached an overheated state.

Binance’s funding rate for Ether currently stands at 0.0162%.

Some traders remain optimistic about a breakout.

“Ether is very close to reaching $4,000,” Pseudonymous trader Ash Crypto told their audience.

“If Ethereum hits $15,000 this cycle, I’ll get my first-ever tattoo. The ETH logo,” stated another trader, Borovik.

Analyst Lark Davis has maintained a $15,000 price target for Ether, pointing to long-term potential.

While Ether’s upward trend has sparked optimism, its ability to surpass $4,000 remains uncertain, with traders monitoring both technical indicators and market sentiment for signs of sustained growth.

At the time of reporting, the Ethereum price was $3,545.66.