Ether Trends toward $4,000 with Nearly 90% of Holders in Profit, but Traders Remain Cautious

Data analytics firm IntoTheBlock reports that 88% of ETH holders are now in profit, the highest percentage since June. The remaining 12% of holders, who are still at a loss, possess just 2.8% of the total ETH supply, suggesting limited potential sell pressure from this group as Ether continues its upward trend.

Despite the positive sentiment among holders, traders are increasingly betting against a surge past $4,000. According to CoinGlass data, up to $1.43 billion in short positions could face liquidation if Ether reaches this price point.

Ether was trading at $3,598 at the time of writing, based on Brave New Coin’s Ethereum Liquid Index. The cryptocurrency last crossed the $4,000 mark on March 12, when Bitcoin (BTC) hit a previous high of $73,679. Since then, Ether has fluctuated between $2,223 and $4,066, even after the launch of spot Ether ETFs on July 23, which some analysts had expected to drive significant price increases.

Funding rates for Ether have seen a notable uptick in recent weeks. CryptoQuant contributor ShayanBTC observed that while these rates have risen, they remain below the levels observed when Ether reached its all-time high of $4,900. This suggests that Ether has not yet entered an “overheated state,” potentially leaving room for further price appreciation.

On Binance, one of the largest cryptocurrency exchanges, Ether’s funding rate stood at 0.0162% at the time of publication.

Market data shows a near-even split in trader positions. The 24-hour long/short ratio for Ether is 50.41% long to 49.59% short, indicating a balanced market sentiment. However, the accumulation of short positions against the $4,000 level highlights trader skepticism about a near-term breakout.

Open interest in Ether futures stands at $119.5 billion, a slight decrease of 0.54% over the last 24 hours. Trading volume over the same period totaled $185.9 billion, down 27.93%. Liquidations amounted to $191.5 million, a decrease of 32.38%, suggesting reduced volatility in the market.

Exchange data reveals that on Binance, longs account for 47.74% of positions while shorts make up 52.26%, with $845.30 million and $925.41 million in positions, respectively. Similar trends are observed on other major exchanges, such as OKX and Bybit, where short positions also slightly outweigh longs.

Despite the cautious trading environment, some market participants remain optimistic about Ether’s prospects. Pseudonymous trader Ash Crypto told their 1.3 million followers on social media platform X that Ether is “very close” to reaching $4,000. Another trader, Borovik, expressed even greater enthusiasm, stating they would get an Ether logo tattoo if the cryptocurrency hits $15,000 this cycle.

Crypto analyst Lark Davis has been reiterating a $15,000 price target for Ether to his 1.2 million followers since July, reflecting a segment of the market that anticipates significant long-term gains.

The Ethereum network continues to show robust activity. According to data, 74% of Ether holders have held the asset for over a year, indicating strong investor confidence. Large transactions over $100,000 totaled $68.6 billion in the past seven days, across approximately 930,500 transactions.

IntoTheBlock’s data also highlights that the concentration of large holders—those owning significant amounts of Ether—is at 53%, suggesting that whales continue to have a substantial influence on the market.

As Ether approaches the psychologically significant $4,000 mark, the market remains at a crossroads between bullish holder sentiment and cautious trader positioning. The coming days may prove pivotal in determining whether Ether can break through the resistance level or if the accumulating short positions will signal a price correction.