Currently, over 98% of #Ethereum✅ is profitable, which is a two-year high. This may indicate a risk of price correction, as investors may want to lock in profits.
According to the on-chain analytics platform Glassnode, the 'Percentage of Supply in Profit' metric for #EthereumNews exceeded 98% on Thursday. This has not been observed in the last two years. This indicator shows the percentage of coins trading above the price of previous transactions conducted with them on the blockchain. Coins are considered 'in profit' when the current price is above the price of the previous transaction and 'at a loss' when it is lower. Historically, values above 95% indicate market overheating and approaching a local maximum. Most investors hold unrealized profits, which creates incentives to sell. Conversely, values below 50% often indicate market lows, when losses reduce selling pressure and create buying opportunities.
Statistics from the last two years highlight the possibility of a pullback. The metric crossed the 95% threshold four times. In three previous cases, two triggered corrections of more than 10%, while the last pullback reduced prices by more than 40%.$ETH