Ethereum Addresses Seeing Profit Surge Nearly Double Since April Lows – Volatility Resurfaces

Ethereum is maintaining its position above the $2,500 mark following several weeks of significant buying activity and positive momentum, despite experiencing a downturn of over 60% since December 2024. This strength is notably occurring at a critical juncture, as Bitcoin has recently surpassed its previous all-time high, fostering a sense of optimism that a new market cycle could be underway—one that may bring substantial profits for alternative cryptocurrencies.

For Ethereum to regain its typical leading position during an altcoin surge, it needs to surpass existing resistance levels and solidify a recovery pattern. Analysts are closely monitoring the evolving price movements for indications that ETH is primed to excel once more.

To demonstrate the extent of the previous downturn, Sentora revealed a significant statistic: after the steep decline that began in December, the percentage of profitable Ethereum addresses plummeted from over 90% to merely 32% by April 2025. While the subsequent recovery has been impressive, the journey toward full restoration continues. If Ethereum can uphold its support levels and reclaim higher prices, it may catalyze a broader altcoin season that could transform the overall market sentiment.

Increasing Volatility: Ethereum Targets a Breakout

After a challenging few months, Ethereum bulls appear to have regained control, forming a positive price structure as the asset attempts to reach the $2,700 threshold. This upward movement initiated with a clear breakout above $2,200, and even though there has been volatility, Ethereum is revealing signs of resilience. Recently, ETH surged past $2,550 before experiencing a brief pullback to around $2,400. Nevertheless, price movements have begun to stabilize, and given Bitcoin’s new all-time highs, Ethereum seems ready to follow suit.

Analysts anticipate a possible breakout if ETH can convert $2,700 into a support level. Momentum is building as selling pressure eases and buyer confidence increases. Many see this as a crucial turning point: if the bulls maintain their momentum, Ethereum could reassert its leadership role in a market that increasingly favors altcoins.

Supporting this optimistic perspective is new on-chain data from Sentora. Following a severe downturn that started in December 2024, the percentage of profitable ETH addresses dropped from over 90% to just 32% by April 2025. The recovery since then has been significant—about 60% of addresses are now back in profit, a level of volatility akin to that seen during the explosive 2017 bull market.

If Ethereum continues on this path and successfully breaks free from its current range, it could not only confirm a robust recovery but also ignite the next significant phase of altcoin season.

ETH Faces Key Resistance

Ethereum is currently navigating a crucial phase, having climbed to $2,687 with a daily increase of 5.3%. The charts indicate ETH is testing its 200-day simple moving average (SMA) at $2,702, a significant technical obstacle that has historically served as resistance. Following several unsuccessful attempts to surpass this level recently, today’s positive momentum places ETH on the brink of a potential breakout.

The bullish setup is underpinned by strong buying volume, reflecting renewed interest from buyers. The 200-day exponential moving average (EMA), currently at $2,444, has provided consistent support throughout May, establishing a foundation for this upward movement. Should Ethereum close decisively above the $2,700 mark, it may pave the way for a rally towards $3,000 and beyond, affirming a trend reversal after an extended bear period.

However, the price remains within a consolidation phase, and it’s crucial for bulls to remain above $2,600 to preserve the breakout potential. A failure to do so might lead to a short-term pullback to the $2,400 to $2,450 demand zone.