97% of Ethereum Addresses in Profit: Bullish Rally or Bubble Warning?

Ethereum holders are sitting pretty—97% of addresses are currently in the green. But is this a sign of unstoppable momentum or a classic bubble setup?

The psychology of profit-taking

When nearly everyone's winning, the market flips into a game of musical chairs. Bulls see validation; skeptics see bagholders-in-waiting.

Smart money vs. dumb money

Retail FOMO meets institutional accumulation—the eternal crypto tug-of-war. Meanwhile, Wall Street quietly rolls its eyes while adjusting its own ETH positions.

History rhymes (until it doesn't)

Every past cycle had its 'everyone's a genius' phase. This time, they swear, it's different—just like they swore last time.

One hedge fund manager's yacht fuel is another's exit liquidity. Place your bets.

In Brief

• A Sentora report reveals that 97 % of Ethereum addresses are currently in profit, a rarely reached level.
• Surpassing the historic 90 % threshold draws comparisons with the 2021 bull run and its massive profit-taking.
• Lark Davis sees the $3,800 to $4,000 range as a key support and a potential buying opportunity.
• Analysts remain divided between a bullish scenario and risk of sharp correction, leaving the market at a strategic crossroads.

A Historic Threshold Reached

While the network gets a makeover for its 10th anniversary celebration, 97 % of ethereum addresses are now in profit according to the report published by Sentora, a level not seen in several years.

97% of Ethereum addresses are currently in profit pic.twitter.com/baL4tIanPw

This rate far exceeds the 90 % threshold, historically associated with massive waves of profit-taking. The most notable precedent dates back to the 2021 bull run, when this level of profitability coincided with a large-scale selling wave.

Here are the important points from the report :

• 97 % of Ethereum addresses are in profit, a record that shows the market’s strength ;

• Passing the critical 90 % threshold, often a trigger for massive profit-taking in ETH’s history ;

• A reference to the 2021 bull run, where a similar situation led to a sharp reversal after an euphoric phase ;

• The analysis is based on data comparing the average purchase price of addresses with the current crypto price.

These on-chain data show a vigorous market, but also potentially vulnerable to sudden sell-offs. Historically, such widespread profit levels have marked major turning points, quickly transforming collective euphoria into marked correction.

Divergent Analyses and Market Strategies

Among optimistic voices, crypto trader and blogger Lark Davis believes the short-term key lies in defending the technical zone “between $3,800 and $4,000”.

He points out that “retesting this zone is likely bullish and represents a buying opportunity for those who missed the breakout”.

His analysis is based on the idea that this range could provide a solid foundation for a new bullish impulse, strengthening the confidence of investors already positioned on ETH.

In contrast, Samson Mow, CEO of JAN3 and known for his pro-bitcoin stance, takes a more cautious tone. He suggests that many historical ETH holders also own significant amounts of BTC and that they might be “rotating that BTC into ETH to pump it with new narratives”, especially around “companies holding their treasury in Ethereum”.

Let me explain what’s happening with ETHBTC.

Most ETH holders have a lot of BTC (ICO/insiders) and they are rotating that BTC into ETH to pump it on new narratives (Ethereum Treasury co’s).

Once they’ve gotten it high enough, they’ll dump their ETH, creating new generational…

According to him, once the price is high enough, “they will dump their ETH, creating new investors stuck with devalued assets, then reinject gains into BTC”. Such a market reading suggests a risk of orchestrated manipulation, with a temporary value transfer in favor of ETH before a massive return to bitcoin.

These contrasting positions reveal a market at a decisive turning point. Upcoming moves will depend as much on ETH’s ability to maintain its technical supports as on the reality of flows between BTC and ETH. In this context, investors face a classic dilemma: benefit from current momentum or protect themselves against a sharp correction.

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