The rise that started under the leadership of Bitcoin also mobilized all altcoins, including Ethereum. At this point, BTC exceeded $59,000 while ETH exceeded $3,300.
While $ 3,500 was first expected after this rise in ETH, popular on-chain data provider Santiment said this week that the Ethereum network has seen its highest profit/loss ratio since November.
Stating that the profit/loss ratio in ETH exceeds the profit/loss ratio in BTC, Santiment stated that this ratio is 2.3 to 1 for ETH and 1.8 to 1 for BTC.
Saying that this ratio indicates that there are more profitable transactions compared to the loss-making ones, Santiment underlined the trend of increasing profitability for transactions in both Ethereum and Bitcoin networks and stated that these ratios show a positive feeling among ETH and BTC holders.
While Santiment also touched upon Cardano apart from BTC and ETH, he said that the situation is different for ADA. Because Cardano became one of the few altcoins that were traded at losses rather than profitable transactions.
Finally, Santiment warned investors by stating that high profitability is a medium-term signal that local peaks have arrived.
“This week the Ethereum network is seeing its highest rate of profitable on-chain transfers since November, with the profit-loss ratio for ETH moving at a ratio of 2.3 to 1.
Meanwhile, Bitcoin's profit-loss ratio is a very high ratio of 1.8 to 1.
Cardano (ADA) was one of the few altcoins that saw more losing transactions than profitable transactions.
Overall, high profit taking is a good medium-term signal for local tops to potentially appear on the horizon.
“We said this when we saw a similar signal for this Centiment metric in late November.”
📈 This week, the #Ethereum network is seeing its highest ratio of profitable #onchain transfers since November, with a 2.3 to 1 ratio of coins moving at a profit vs. loss. Meanwhile, #Bitcoin's ratio is also quite high at 1.8 to 1. #Cardano is one of the few seeing more loss… pic.twitter.com/wLpCEpt7bZ
— Santiment (@santimentfeed) February 27, 2024
*This is not investment advice.
