Ethereum bounces back and forth at $3,000

Ethereum's recent re-entry into the $3,000 price range and its implications

After spending several days below a significant benchmark, Ethereum (ETH) has made a noteworthy comeback into the $3,000 price range. This resurgence not only marks a pivotal moment for the cryptocurrency but also signifies an increase in ETH's supply in profit, underscoring a positive shift in market dynamics.

Ethereum's Price Dynamics and Market Sentiment

Ethereum's journey back to the $3,000 threshold is accompanied by a modest yet impactful 2.43% increase recorded on the 24th of February, closing the trading session at approximately $2,992. The momentum didn't stop there; at the time of writing, an additional 1.5% increase was observed, officially bringing ETH's price back into the $3,000 domain. This return to the $3,000 mark, a feat achieved twice this month, is particularly notable since such levels had not been seen for over a year. The upward trend reflects not just a recovery but a robust bull trend, as evidenced by the positive market sentiment surrounding Ethereum.

Analysis of Ethereum’s Supply in Profit

The resurgence in Ethereum's price has significantly impacted its Total Supply in Profit, with recent weeks witnessing a consistent growth. The leap beyond the $3,000 level has been a major contributor, with data from Santiment revealing an increase of around 1 million ETH in profit over just three days. As of this writing, the Total Supply in Profit stands at 121.66 million ETH, a subtle yet significant rise from 120.18 million observed on the 23rd of February. This peak, the highest in over a year, indicates that over 90% of the entire ETH supply is now in profit, highlighting the growing investor confidence in Ethereum.

Image Source: Santiment

The Overbought Zone and RSI Indicators

The recent price actions have also had a pronounced effect on Ethereum's Relative Strength Index (RSI), propelling it into the overbought zone with a current reading of 75. This indicates that Ethereum, while still on a bull trend, is navigating territories that suggest a highly bought market condition. While being in the overbought zone can often precede a price pullback, it also underlines the strength of the current market enthusiasm for ETH.