Most Ethereum holders now have a good reason to smile to the banks. This is because over 90% of the circulating Ethereum supply is now in a state of profit. In other words, the current price is higher compared to the price point at the time the coins last moved.
Last time we saw this level was in February 2018 when the $ETH price was at $925.
Over 90% of the circulating #ETH supply is now in a state of profit, i.e. the current price is higher compared to the price at the time the coins last moved.
Last time this we saw this level was in Feb 2018 when the $ETH price was at $925.
— glassnode (@glassnode) August 3, 2020
Ethereum was trading around $391, as at the time of filing this report. It is the second most valuable crypto asset in the world with a market capitalization of $143.88 billion as well as a trading volume of about $13.88 billion.
Why Ethereum is surging
In an earlier article by Nairametrics, the co-founder of Spartan Black, Kelvin Koh, was quoted as he explained what was responsible for the surge in the ETH market. He said:
“The strong move in Ethereum has to do with the upcoming ETH 2.0 launch which is a major catalyst. Every phase of ETH 2.0 over the next 2-3 years brings ETH closer to its final state and will be catalysts for Ethereum.”
What to look for
Breaking the $400 resistance level represents a dramatic shift for Ethereum, which stood at around the $112 price level in March following the market carnage that occurred as a result of the ravaging COVID-19 virus.
It should, therefore, be noted that Ethereum 2.0 is imminent. This will see the crypto asset switching from the current proof-of-work model to proof-of-stake. It will also optimize sharding techniques which will help hasten up transactions on the blockchain.