97% Profitable Ethereum Addresses, Bullish Or Warning Sign

Sentora (formerly IntoTheBlock) reveals that 97% of Ethereum addresses are currently in profit, a rarely reached level shaking the market. This record recalls the 2021 bull run, when euphoria had preceded massive profit-taking. Today, analysts are divided between optimism and caution, seeing in this statistic either the sign of a new bullish momentum or the warning of a possible reversal.

In Brief

• A Sentora report reveals that 97% of Ethereum addresses are currently in profit, a rarely reached level.
• Surpassing the historic 90% threshold draws comparisons with the 2021 bull run and its massive profit-taking.
• Lark Davis sees the $3,800 to $4,000 range as a key support and a potential buying opportunity.
• Analysts remain divided between a bullish scenario and risk of sharp correction, leaving the market at a strategic crossroads.

A Historic Threshold Reached

While the Ethereum network prepares for its 10th anniversary with upgrades, 97% of Ethereum addresses are now in profit according to Sentora's report, a level not seen in several years.

97% of Ethereum addresses are currently in profit pic.twitter.com/baL4tIanPw

— Sentora (previously IntoTheBlock) (@SentoraHQ) August 11, 2025

This rate far exceeds the 90% threshold, historically associated with massive waves of profit-taking. The most notable precedent dates back to the 2021 bull run, when this level of profitability coincided with a large-scale selling wave. Key points from the report include:
• 97% of Ethereum addresses are in profit, indicating strong market momentum.
• Crossing the critical 90% profitability threshold, often a trigger for significant profit-taking in ETH's history.
• A parallel to the 2021 bull run, where similar conditions led to a sharp market reversal after an euphoric phase.
• The analysis compares the average purchase price of addresses with the current Ethereum price.
These on-chain data reflect a vigorous market but also highlight vulnerability to sudden sell-offs. Historically, such widespread profit levels have marked major turning points, quickly transforming collective euphoria into marked corrections.

Divergent Analyses and Market Strategies

Among optimistic voices, crypto trader and blogger Lark Davis highlights the importance of defending the technical zone between $3,800 and $4,000. He suggests that “retesting this zone is likely bullish and represents a buying opportunity for those who missed the breakout.” His analysis implies that this price range could serve as a solid foundation for a new bullish impulse, boosting investor confidence in Ethereum. In contrast, Samson Mow, CEO of JAN3 and a known pro-Bitcoin advocate, offers a more cautious perspective. He suggests many historical ETH holders also possess significant BTC holdings and may be “rotating that BTC into ETH to pump it with new narratives,” especially around “companies holding their treasury in Ethereum.”

Let me explain what’s happening with ETHBTC.

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Most ETH holders have a lot of BTC (ICO/insiders) and they are rotating that BTC into ETH to pump it on new narratives (Ethereum Treasury co’s).

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Once they’ve gotten it high enough, they’ll dump their ETH, creating new generational…

— Samson Mow (@Excellion) August 10, 2025

According to Mow, once the price reaches a certain level, these holders may sell their ETH, leaving new investors with devalued assets, then reinject gains back into BTC. This suggests a risk of orchestrated manipulation, with a temporary value transfer favoring ETH before a large return to Bitcoin. These contrasting views reveal a market at a decisive turning point. Future price movements will depend on Ethereum's ability to maintain technical supports and the dynamics of BTC-ETH flows. Investors face a classic dilemma: capitalize on current momentum or hedge against a sharp correction.

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Frequently Asked Questions (FAQ)

Q: What does it mean that 97% of Ethereum addresses are in profit? A: This metric indicates that a vast majority of Ethereum holders have seen their initial investment increase in value. It suggests strong positive sentiment and potential bullish momentum in the market. Q: Is a high percentage of profitable addresses a good sign for Ethereum? A: While it indicates current success, historical data suggests that very high profitability levels (like 97%) can sometimes precede profit-taking and potential market corrections, as seen in the 2021 bull run. Q: What is the significance of the 90% profitability threshold? A: Historically, when Ethereum profitability surpasses the 90% mark, it has often been a trigger for significant sell-offs as investors lock in their gains. Q: What is the $3,800 to $4,000 range in Ethereum? A: This is identified as a key support level. If Ethereum maintains this price range, it could indicate a strong foundation for continued upward price movement, as suggested by analyst Lark Davis. Q: What is the "rotating BTC into ETH" narrative mentioned by Samson Mow? A: This refers to a potential strategy where holders of Bitcoin might sell their BTC to buy Ethereum, possibly to capitalize on new narratives or price movements in ETH, before potentially selling ETH later and returning to BTC. Q: What are the risks associated with high profitability in Ethereum? A: The primary risk is a potential market reversal due to widespread profit-taking. When many holders are in profit, there's a greater incentive for them to sell, which can lead to price declines. Q: How do companies holding Ethereum in their treasury affect the market? A: When companies hold ETH as part of their treasury, it can increase demand and potentially influence price. However, Samson Mow suggests that these companies might also be involved in speculative trading patterns, rotating assets to maximize gains. Q: What are the two main scenarios analysts are considering based on this data? A: Analysts are divided between a bullish scenario, where the high profitability signals continued upward momentum, and a cautious scenario, where it serves as a warning sign of an impending market correction or reversal. Q: How does Sentora (formerly IntoTheBlock) calculate address profitability? A: Sentora analyzes on-chain data by comparing the average purchase price of addresses with the current Ethereum price to determine if they are in profit or loss. Q: What does "profit-taking" mean in the crypto market? A: Profit-taking is when investors sell their assets after they have appreciated in value, in order to secure their gains. This can lead to increased selling pressure in the market.

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Crypto Market AI's Take

The high profitability of Ethereum addresses, reaching 97%, is a compelling data point that sparks significant discussion within the crypto community. While on-chain metrics like this are invaluable for understanding market sentiment, they should always be considered alongside broader economic factors and evolving regulatory landscapes. At Crypto Market AI, we leverage advanced AI to analyze these trends, helping investors navigate such complex market conditions. Our AI-powered tools provide deep market insights, enabling informed trading decisions by identifying potential opportunities and risks in real-time, much like discerning between a bullish signal and a potential reversal in Ethereum's price trajectory.

More to Read:

• How to Start Cryptocurrency Trading: Step-by-Step Guide for Beginners
• Understanding Ethereum: A Comprehensive Overview
• AI Crypto Trading Bots: Automate Your Investments

Source: Originally published at Cointribune on Tue, 12 Aug 2025.