Ethereum Investor Profitability Experiences Significant Shift Amid Recent Price Surge
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Recent Surge in Ethereum Holder Profitability
A recent analysis by the institutional DeFi solutions provider Sentora (previously known as IntoTheBlock) highlights the remarkable transformation in the profit-loss dynamics of Ethereum investors. This change follows the latest uptrend in Ethereum’s market value.
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Understanding the “Historical In/Out of the Money” Indicator
Central to this analysis is the “Historical In/Out of the Money” metric, which assesses the profitability status of Ethereum holders. This indicator categorizes users into three groups: those in profit (“in the money”), those incurring losses (“out of the money”), and those breaking even (“at the money”).
The metric functions by evaluating the on-chain data of each Ethereum address to determine the average purchase price of their holdings. If the spot price is above this average acquisition cost, the holder is deemed to be in profit. Conversely, if the spot price is below the acquisition cost, the holder is considered to be at a loss. An equal spot and acquisition price denote a break-even status.
An Analysis of Historical Trends in Ethereum Profitability
The following chart illustrates the shifts in the Ethereum Historical In/Out of the Money over the past decade:
As depicted in the graph, Ethereum investors experienced a dramatic decline in profitability after a significant selloff began in December 2024. Prior to this downturn, over 90% of users were holding unrealized gains. By April 2025, this figure had plummeted to just 32%.
However, the tide has turned once more with Ethereum’s recent price rally, resulting in nearly 60% of holders being back in profit. Although not yet at the levels seen late last year, this marks a substantial improvement.
Sentora’s analytics highlight that the last time Ethereum experienced such intense volatility was during the 2017 cycle.
Ethereum’s Recovery and Key On-Chain Levels
In other developments, Ethereum has regained two crucial on-chain thresholds during its recovery, as detailed in Glassnode’s latest weekly report.
The “Realized Price,” representing the average purchase price of all Ethereum investors, was reclaimed early in the price surge. Currently, this level is at $1,900, indicating that investors are in significant profit at present market rates.
Furthermore, Ethereum has surpassed the “True Market Mean” of $2,400. This model, akin to the Realized Price, provides a more precise average acquisition level by excluding long-dormant supply.
The final milestone for Ethereum remains the “Active Realized Price” at $2,900, an advanced version of the Realized Price model.
Current Ethereum Price Trends
Ethereum’s value has ascended to $2,660, following a 4% increase over the past week.
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