ETH News: Price Warning: 98% of Holders Are in Profit – Is a Crash Coming?

Here's something that should make every ETH Ethereum (ETH) holder pause: 98% of Ethereum's supply is now trading in profit – the highest we've seen in two years. While that sounds like fantastic news, history tells us it might actually be a red flag.

ETH Hits Dangerous Profit Territory

Glassnode's latest data shows that Ethereum (ETH) just hit the 98% mark on their "Percent Supply in Profit" metric this Thursday. What does this mean exactly? Simply put, almost everyone who owns ETH right now is sitting on gains compared to when they bought in.

Here's the thing – when readings climb above 95%, markets tend to get a bit too hot for their own good. Think about it: when nearly everyone's making money, the temptation to cash out becomes pretty strong. And when lots of people start selling at once, prices usually take a hit.

Looking at the flip side, when this metric drops below 50%, that's often when we see market bottoms. Makes sense, right? When most people are losing money, there's less incentive to sell, which can create buying opportunities.

History Shows Ethereum (ETH) Price Could Drop Hard

The numbers from the past two years are pretty eye-opening. We've seen this 95% threshold crossed four times before, and it didn't end well most of the time. Out of three previous instances, two led to corrections bigger than 10%. The worst one? ETH prices got absolutely hammered, dropping over 40%.

That's not exactly the kind of pattern you want to ignore when you're holding a bag of ETH.

What's Really Driving ETH Higher (And Why It Matters)

The current rally isn't just random – it's been powered largely by Digital Asset Treasury (DAT) companies that started buying heavily back in May. This institutional money has been great for pushing prices up, but here's the catch: if these big players decide to take profits all at once, we could see a serious correction.

These whale movements can be triggered by all sorts of things – changes in the broader economy, new regulations, or just basic portfolio management. Since so much of the recent buying has been concentrated among these large holders, their selling could pack quite a punch.

If ETH does start correcting, keep an eye on that profit metric. When it drops sharply alongside the price, that's historically been a pretty reliable signal that we've hit a short-term bottom. Could be useful timing info if you're trying to navigate what might be a bumpy ride ahead.